# In the matter of NRW Polymers Private Limited C.P. No. 623-IBC-MB-2020

> NCLT judgment dated 2022-04-28. Citation: TCN-2022-NCLT-02984. The case involves an application filed by M/s Mahavir Chemicals, the Operational Creditor,…

- **Court:** NCLT
- **Order date:** 28 Apr 2022
- **Citation:** TCN-2022-NCLT-02984
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/nrw-polymers-private-limited-cp-no-623-ibc-mb-2020-05d5ce1c

## Summary

### Background

The case involves an application filed by M/s Mahavir Chemicals, the Operational Creditor, against NRW Polymers Private Limited, the Corporate Debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of the Corporate Insolvency Resolution Process (CIRP) due to an unresolved operational debt of Rs. 29,58,104.28. The Operational Creditor claimed to have supplied goods (chemicals) to the Corporate Debtor on multiple occasions, raising invoices for the same. The Corporate Debtor allegedly failed to make payments as per the invoice terms.

## Facts

M/s Mahavir Chemicals, an operational creditor, filed a company petition against NRW Polymers Private Limited, the corporate debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP). The operational creditor claimed an unresolved operational debt of Rs. 29,58,104.28. The operational creditor supplied chemicals to the corporate debtor on multiple occasions and raised invoices. The corporate debtor did not raise any dispute regarding the quality, quantity, or amount of the invoices upon receiving the goods. The corporate debtor failed to make immediate payments as per the invoice terms. In June 2019, the operational creditor issued a demand notice (Form-3) to the corporate debtor demanding

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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 genuine dispute is a valid ground for rejecting an application under

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**Reasoning:** The NCLT considered the Corporate Debtor's argument that a dispute existed regarding the

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**Interpretation:** The interpretation of 'dispute' under the IBC requires a genuine and

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**Application:** The NCLT determined that the Corporate Debtor's claim of a pre-existing dispute

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## Parties

- **Judges:** H.V. Subb…; Chandra Bha…
- **Appellants:** Mahavir Che…
- **Respondents:** NRW Polymers…; NRW Polymers Pvt…

## Timeline

- **2019-06-01 — Demand Notice…**: The Operational Creditor issued a 1st demand notice (Form-3) to the Corporate Debtor…
- **2019-07-01 — Corporate Debto…**: The Corporate Debtor addressed an email to the Operational Creditor asking for the…

## 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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