# In the matter of Hero Electric Vehicles Pvt. Ltd.

> NCLT judgment dated 2024-12-20. Citation: TCN-2024-NCLT-00010. The case involves a petition filed by Metro Tyres Limited (Operational Creditor) under Section…

- **Court:** NCLT
- **Order date:** 20 Dec 2024
- **Citation:** TCN-2024-NCLT-00010
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/hero-electric-vehicles-pvt-ltd-0c14bc30

## Summary

### Background

The case involves a petition filed by Metro Tyres Limited (Operational Creditor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Hero Electric Vehicles Pvt. Ltd. (Corporate Debtor) for initiating the Corporate Insolvency Resolution Process (CIRP). The Operational Creditor supplied cycle tyres and tubes to the Corporate Debtor based on reputation, raising invoices from 09.08.2022 to 03.12.2022, totaling Rs. 3,69,53,071. The Corporate Debtor paid Rs. 4,27,698, leaving an outstanding amount of Rs. 1,85,25,373 as of 31.03.2024. The Corporate Debtor claimed quality issues with the supplied tyres, leading to a dispute.

## Facts

Metro Tyres Limited (Operational Creditor) filed a petition against Hero Electric Vehicles Pvt. Ltd. (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate CIRP. The Operational Creditor supplied cycle tyres and tubes to the Corporate Debtor between 09.08.2022 and 03.12.2022, with invoices totaling Rs. 3,69,53,071. The Corporate Debtor made a partial payment of Rs. 4,27,698, leaving an outstanding debt of Rs. 1,85,25,373 as of 31.03.2024. The Operational Creditor sent a demand notice on 18.11.2023. The Corporate Debtor claimed quality issues with the tyres, citing tread separation, bubbles, and air leakage, and raised this concern via email on 09.09.2023. The Operational Creditor refuted these claims, stating they supply no

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor raised a plausible contention regarding the pre-existence of a dispute …

**Ratio:** The law, as laid down by the Hon'ble Supreme Court, states that if the Corporate Debtor

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**Reasoning:** The court found that the Corporate Debtor's claim of quality issues was raised belatedly,

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**Interpretation:** The court interpreted the law to mean that a genuine pre-existing dispute must

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**Application:** In this case, the court applied the ratio by determining that the Corporate

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## Parties

- **Judges:** BACHU VENKAT…; ATUL CHAT…
- **Appellants:** M/S METRO TYRES…
- **Respondents:** M/s HERO ELECTRIC…
- **Advocates:** Pallav S…; Syed Ar…; +5 more

## Timeline

- **2022-08-09 — Invoice Perio…**: Start date of the period during which the Operational Creditor raised invoices to the…
- **2022-12-03 — Invoice Per…**: End date of the period during which the Operational Creditor raised invoices to the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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