# In the matter of Macmet India Limited C.P. (IB)-2108-KB-2019

> NCLT judgment dated 2022-12-01. Citation: TCN-2022-NCLT-00271. A.P.C System and Products Private Limited, claiming to be a financial creditor, filed a…

- **Court:** NCLT
- **Order date:** 1 Dec 2022
- **Citation:** TCN-2022-NCLT-00271
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/macmet-india-limited-cp-ib-2108-kb-2019-d9ae9e4f

## Summary

### Background

A.P.C System and Products Private Limited, claiming to be a financial creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Macmet India Limited, the corporate debtor. The operational creditor claimed a default of ₹3,14,72,753/- along with interest. The corporate debtor contested the petition, arguing the existence of a pre-existing dispute based on a pending appeal against a decree obtained by the operational creditor in a money suit. The corporate debtor also argued that the petition was barred by limitation and that the operational creditor did not fall within the definition of 'operational creditor' under the Code.

## Facts

A.P.C System and Products Private Limited (Operational Creditor) filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 against Macmet India Limited (Corporate Debtor) to initiate Corporate Insolvency Resolution Process (CIRP). The Operational Creditor claimed a default of ₹3,14,72,753/- along with interest, based on a decree dated July 31, 2018, passed in Money Suit No. 11244 of 2012 by the Learned 4th Civil Judge (Senior Division) at Alipore. The Corporate Debtor was directed to make payment within 6 months from the date of the decree. The time period for payment expired on January 31, 2019, without any payment from the Corporate Debtor. The Corporate Debtor preferred an appeal (F.A.T. 584 of 2018) against the decree, which was pending before

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## Issues and analysis

### Issue 1: Whether the existence of a pending appeal against a decree obtained by the operational creditor …

**Ratio:** The pendency of an appeal against a decree of a Court is a case of pre-existing ongoing

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**Reasoning:** The court relied on the Supreme Court's decision in K. Kishan v. Ms. Vijay Nirman Company

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**Interpretation:** The court interpreted the term 'pre-existing dispute' to include cases where an

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**Application:** In this case, the Corporate Debtor had preferred an appeal against the decree

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## Parties

- **Judges:** Rohit K…; Balraj…; +1 more
- **Appellants:** A.P.C System and…
- **Respondents:** Macmet India…
- **Advocates:** Kuldip Ma…; Mudrika K…; +2 more

## Timeline

- **2012-01-01 — Money Suit…**: Money Suit No. 11244 of 2012 filed by the Operational Creditor against the Corporate…
- **2018-07-31 — Decree P…**: Decree passed in Money Suit No. 11244 of 2012, directing the Corporate Debtor to make…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8(2) — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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