# In the matter of LG Electronics India Pvt. Ltd.

> NCLT judgment dated 2023-07-28. Citation: TCN-2023-NCLT-02281. The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 28 Jul 2023
- **Citation:** TCN-2023-NCLT-02281
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/lg-electronics-india-pvt-ltd-6d6fd817

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, by M/s Deshwal Waste Management Private Limited (Operational Creditor) against M/s LG Electronics India Private Limited (Corporate Debtor) for initiation of Corporate Insolvency Resolution Process (CIRP). The Operational Creditor claimed an outstanding amount of Rs. 13,94,35,941.41 as of 02.03.2022, related to e-waste collection and recycling services provided to the Corporate Debtor. A fire incident at the Operational Creditor's plant on 24.06.2021 destroyed relevant records. The Corporate Debtor disputed the debt, citing non-submission of necessary documents as per the agreement and the applicability of Section 10A of the IBC for certain invoices.

## Facts

M/s Deshwal Waste Management Private Limited (Operational Creditor) filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against M/s LG Electronics India Private Limited (Corporate Debtor) for initiation of Corporate Insolvency Resolution Process (CIRP). The Operational Creditor is engaged in the business of collecting, dismantling, and recycling e-waste. An "Agreement for management of Extended Producer Responsibility" was executed between the parties on 05.08.2019. The Operational Creditor claimed an amount of Rs 13,94,35,941.41 due as of 02.03.2022, with the principal amount being Rs. 12,78,34,882.41 and interest calculated till 25.05.2022 at 18% p.a. being Rs. 1,16,01,059. A fire broke out at the Operational Creditor's plant on

…

## Issues and analysis

### Issue 1: Whether the application under Section 9 of the Insolvency and Bankruptcy Code, 2016 is maintainable …

**Ratio:** The existence of a pre-existing dispute is a bar to the admission of an application under

…

**Reasoning:** The Corporate Debtor raised concerns about the lack of supporting documents due to a fire

…

**Interpretation:** Section 9 of the IBC requires that there should be no pre-existing dispute

…

**Application:** In this case, the Corporate Debtor's concerns about the lack of supporting

…

## Parties

- **Judges:** P.S.N. P…; BINOD KUMAR…
- **Appellants:** M/s. Deshwal…
- **Respondents:** M/s LG Electronics…

## Timeline

- **2019-08-05 — Agreement Ex…**: An “Agreement for management of Extended Producer Responsibility” was executed between…
- **2021-06-24 — Fire Inc…**: A severe fire broke out at the Plant of the Operational Creditor located at Plot No.215,…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/lg-electronics-india-pvt-ltd-6d6fd817