# In the matter of Kalimata Ispat Industries Private Limited CP(IB) No. 2023-KB-2019

> NCLT judgment dated 2022-05-25. Citation: TCN-2022-NCLT-02614. BCPL International Limited filed a Company Petition under Section 9 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 25 May 2022
- **Citation:** TCN-2022-NCLT-02614
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/kalimata-ispat-industries-private-limited-cpib-no-2023-kb-2019-441d5a9a

## Summary

### Background

BCPL International Limited filed a Company Petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Kalimata Ispat Industries Private Limited. The Operational Creditor claimed that the Corporate Debtor defaulted on payments for steel products supplied between 2017 and 2018. The Corporate Debtor contested the claim, alleging that the supplied goods were of substandard quality and that pre-existing disputes existed between the parties.

## Facts

BCPL International Limited (Operational Creditor) claimed that Kalimata Ispat Industries Private Limited (Corporate Debtor) defaulted on payments for steel products supplied between 2017 and 2018, amounting to ₹3,01,89,141/-. The Corporate Debtor argued that the supplied goods were of substandard quality, leading to rejection of materials and business losses. They claimed a total claim of ₹2,92,00,000/- against the Operational Creditor. The Corporate Debtor presented letters from 2017 and 2019 disputing the quality of the goods and requesting their removal. The Operational Creditor alleged that these letters were fabricated, pointing to discrepancies in postal information and email communications. The Corporate Debtor had made payments of ₹7,96,10,791/- against the

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## Issues and analysis

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

**Ratio:** The existence of a pre-existing dispute is a valid ground for rejecting an application

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**Reasoning:** The court considered the letters presented by the Corporate Debtor, disputing the quality

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**Interpretation:** The court interpreted the evidence to suggest that there was a dispute

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**Application:** The court applied the ratio to the facts of the case, concluding that the

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## Parties

- **Judges:** Rajasekha…; Balraj…
- **Appellants:** BCPL International…
- **Respondents:** Kalimata Ispat…

## Timeline

- **2017-02-28 — Closure of Hyde Road…**: Hyde Road Post Office was closed on…
- **2017-03-01 — Commencement o…**: Operational Creditor started…

## 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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