# In the matter of Shree Ambika Impex Limited

> NCLT judgment dated 2024-07-23. Citation: TCN-2024-NCLT-00967. The case involves an application under Section 9 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 23 Jul 2024
- **Citation:** TCN-2024-NCLT-00967
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/shree-ambika-impex-limited-ff0dfd39

## Summary

### Background

The case involves an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, by M/s Jainco Industries (Operational Creditor) to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s Shree Ambika Impex Ltd. (Corporate Debtor). The Operational Creditor claims that the Corporate Debtor defaulted on payments amounting to Rs. 1,61,32,532/- for goods supplied between 26.11.2020 and 25.05.2021. The Corporate Debtor contested the application, alleging a pre-existing dispute regarding the origin of the goods.

## Facts

M/s Jainco Industries, an operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s Shree Ambika Impex Ltd., the corporate debtor. The operational creditor claimed that the corporate debtor defaulted on payments amounting to Rs. 1,61,32,532/- for goods supplied between 26.11.2020 and 25.05.2021. The corporate debtor approached the applicant for the supply of goods. The operational creditor raised various invoices for the goods supplied to the corporate debtor. Despite reminders, the corporate debtor failed to make payments for the goods supplied, amounting to Rs. 1,41,51,336/- plus interest at 24% (i.e., Rs. 19,81,196/-). The corporate debtor sent a

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## Issues and analysis

### Issue 1: Whether there is a pre-existing dispute between the Operational Creditor and the Corporate Debtor …

**Ratio:** The Hon'ble Supreme Court in Mobilox Innovations Private Limited Vs Kirusa Software

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**Reasoning:** The NCLT observed that the Corporate Debtor's demand for details of the first seller of

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**Interpretation:** A pre-existing dispute must be a bona fide and genuine dispute raised before

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**Application:** In this case, the Corporate Debtor's demand for information regarding the

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## Parties

- **Judges:** MAHENDRA KHANDELWA…; Sanjeev R…
- **Appellants:** M/s Jainco…
- **Respondents:** M/S SHREE AMBIKA…

## Timeline

- **2020-11-26 — Invoice Perio…**: Start date of the period during which invoices…
- **2021-05-25 — Invoice Per…**: End date of the period during which invoices…

## 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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