# In the matter of Jalaram Flexo Laminates Ltd. CP No. 1713-IBC-MB-2018

> NCLT judgment dated 2022-06-03. Citation: TCN-2022-NCLT-02414. Hubergroup India Pvt. Ltd., the Operational Creditor, filed a Company Petition under Section 9…

- **Court:** NCLT
- **Order date:** 3 Jun 2022
- **Citation:** TCN-2022-NCLT-02414
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/jalaram-flexo-laminates-ltd-cp-no-1713-ibc-mb-2018-50f67bba

## Summary

### Background

Hubergroup India Pvt. Ltd., the Operational Creditor, filed a Company Petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Jalaram Flexo Laminates Ltd., the Corporate Debtor, for defaulting on payments. The Operational Creditor claimed that the Corporate Debtor failed to pay a sum of Rs. 1,17,65,049/- plus interest at 24% p.a. for goods sold, supplied, and delivered. The Corporate Debtor, however, contested the petition, claiming a pre-existing dispute regarding rate differences and quality issues.

## Facts

Hubergroup India Pvt. Ltd. (Operational Creditor) filed a petition against Jalaram Flexo Laminates Ltd. (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, claiming a default in payment. The Operational Creditor had sold and delivered printing inks to the Corporate Debtor, with outstanding sales amounting to Rs. 1,07,87,937/- and overdue interest of Rs. 9,67,723/-, plus pending Sales Tax Forms 'C' Liability of Rs. 9,389/-. The Operational Creditor sent a demand notice dated 08.02.2018, which was received by the Corporate Debtor on 19.02.2018. The Corporate Debtor replied on 22.02.2018, denying liability and claiming a rate difference and quality problem, alleging that the Operational Creditor's salesperson had assured a discount. The

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## Issues and analysis

### Issue 1: Whether a pre-existing dispute existed between the Operational Creditor and the Corporate Debtor …

**Ratio:** The existence of a genuine dispute, even if not pending in a suit or arbitration, can be

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**Reasoning:** The Adjudicating Authority found that the Corporate Debtor had raised concerns about rate

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**Interpretation:** The term 'dispute' under the IBC is interpreted broadly to include any genuine

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**Application:** In this case, the Corporate Debtor's claims of rate differences and quality

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## Parties

- **Judges:** P.N. Deshmukh…; Shyam Babu…
- **Appellants:** Hubergroup India…
- **Respondents:** Jalaram Flexo…

## Timeline

- **2018-02-08 — Demand Notice…**: The Operational Creditor sent a Demand Notice under Form 3 to the Corporate Debtor…
- **2018-02-19 — Demand Notice…**: The Demand Notice was delivered to and…

## 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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