# In the matter of Mccoy Silicones Limited Company Petition No. (IB)- 120-(ND)-2019

> NCLT judgment dated 2022-08-17. Citation: TCN-2022-NCLT-01337. The case involves a petition filed by M/s. Wacker Chemie AG, an operational creditor, against…

- **Court:** NCLT
- **Order date:** 17 Aug 2022
- **Citation:** TCN-2022-NCLT-01337
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/mccoy-silicones-limited-company-petition-no-ib-120-nd-2019-5474a4b5

## Summary

### Background

The case involves a petition filed by M/s. Wacker Chemie AG, an operational creditor, against M/s. Mccoy Silicones Limited, the corporate debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP). Wacker Chemie AG claimed outstanding payments of USD 228,924 based on invoices raised in September 2009. The corporate debtor contested the petition, asserting a pre-existing dispute, breach of the distribution agreement, and the petition being barred by limitation. The applicant, Wacker Chemie AG, had a distribution agreement with the corporate debtor since 1999. The corporate debtor claimed losses due to predatory pricing by the applicant and raised debit notes. The applicant had previously filed

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## Facts

M/s. Wacker Chemie AG (Operational Creditor) filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against M/s. Mccoy Silicones Limited (Corporate Debtor) for outstanding operational debt of USD 228,924 based on invoices raised in September 2009. The applicant and corporate debtor had a distribution agreement since 1999. The corporate debtor claimed the applicant breached the agreement by distributing products directly in the market, causing losses. The corporate debtor raised debit notes against the applicant. The applicant issued a demand notice on 15.10.2018. The corporate debtor claimed non-service of the demand notice and pre-existing dispute. The applicant had previously filed a winding-up petition in the High Court of Delhi, which was

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## Issues and analysis

### Issue 1: Whether there exists a pre-existing dispute between the operational creditor and the corporate …

**Ratio:** The existence of a pre-existing dispute is a mandatory condition for rejecting an

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**Reasoning:** The court found that the corporate debtor had raised claims and issued debit notes

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**Interpretation:** The term 'dispute' is interpreted as a conflict or controversy, a conflict of

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**Application:** In this case, the court found that the corporate debtor had raised claims and

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## Parties

- **Judges:** Sh. Dharminder…; BINOD KUMAR…
- **Appellants:** M/s. Wacker…
- **Respondents:** M/s. Mccoy…

## Timeline

- **1999-04-29 — Distribution A…**: Applicant and Corporate Debtor…
- **2009-09-01 — Invoices…**: Applicant raised invoices for USD 228,924 which are the basis of the operational debt…

## 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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