# In the matter of RAPT Industries Pvt. Ltd. IB-585-(ND)-2019

> NCLT judgment dated 2022-08-24. Citation: TCN-2022-NCLT-01285. The case originates from an application filed under Section 9 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 24 Aug 2022
- **Citation:** TCN-2022-NCLT-01285
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/rapt-industries-pvt-ltd-ib-585-nd-2019-ea0bf2ae

## Summary

### Background

The case originates from an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against Rapt Industries Pvt. Ltd., the corporate debtor. The Adjudicating Authority initially dismissed the petition on January 22, 2022, citing a pre-existing dispute. This decision was challenged before the NCLAT, New Delhi, which accepted the appeal on July 13, 2022, holding that no pre-existing dispute existed between the parties. The NCLAT set aside the Adjudicating Authority's order and directed the admission of the Section 9 application for CIRP.

## Facts

K B Polychem India Ltd., an operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Rapt Industries Pvt. Ltd., the corporate debtor. The Adjudicating Authority initially dismissed the petition, citing a 'pre-existing dispute'. K B Polychem India Ltd. appealed to the NCLAT, which overturned the Adjudicating Authority's decision, holding that no pre-existing dispute existed. The NCLAT directed the Adjudicating Authority to admit the Section 9 application. The operational creditor did not propose an Interim Resolution Professional (IRP), leading the bench to appoint Mr. Rakesh Kumar Jindal as the IRP. The order also declared a moratorium under Section 14 of

…

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority's initial dismissal of the Section 9 application based on a …

**Ratio:** The existence of a pre-existing dispute is a valid ground for rejecting a Section 9

…

**Reasoning:** The NCLAT found that the Adjudicating Authority's conclusion regarding the existence of a

…

**Interpretation:** The interpretation of 'pre-existing dispute' is crucial in determining the

…

**Application:** In this case, the NCLAT applied the ratio by examining the facts and concluding

…

## Parties

- **Judges:** Sh. Dharminder…; BINOD KUMAR…
- **Appellants:** K.B Polychem…
- **Respondents:** Rapt Industries…

## Timeline

- **2022-01-22 — Initial Dismissal of…**: The Adjudicating Authority dismissed the Section 9 application filed by K B Polychem…
- **2022-07-13 — NCLAT Or…**: The NCLAT accepted the appeal, holding that no pre-existing dispute existed and directed…

## 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/rapt-industries-pvt-ltd-ib-585-nd-2019-ea0bf2ae