# In the matter of UPI Polymers Pvt.  Ltd. TCP (IB) No. 65-9-AMR-2019

> NCLT judgment dated 2022-04-01. Citation: TCN-2022-NCLT-03434. The case involves an application filed by ITS Tecnodue India Pvt Ltd (Operational Creditor)…

- **Court:** NCLT
- **Order date:** 1 Apr 2022
- **Citation:** TCN-2022-NCLT-03434
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/upi-polymers-pvt-ltd-tcp-ib-no-65-9-amr-2019-67c0c800

## Summary

### Background

The case involves an application filed by ITS Tecnodue India Pvt Ltd (Operational Creditor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against UPI Polymers Private Limited (Corporate Debtor). The Corporate Debtor is engaged in manufacturing various types of pipes and tube products. The Operational Creditor supplied goods and services to the Corporate Debtor based on purchase orders. The Corporate Debtor allegedly failed to make payments as per the invoices, leading to a demand notice from the Operational Creditor. The Corporate Debtor disputed the claim, citing pre-existing disputes and mismanagement by a former director, Mr. M.V. Bhushanam.

## Facts

ITS Tecnodue India Pvt Ltd (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against UPI Polymers Private Limited (Corporate Debtor). The Corporate Debtor is in the business of manufacturing pipes and tube products. The Operational Creditor supplied goods and services to the Corporate Debtor based on purchase orders. The Corporate Debtor failed to make payments as per the invoices, resulting in an outstanding amount of Rs.1,93,44,700/-. The Operational Creditor issued a demand notice, but the Corporate Debtor replied stating that there was no due. The Corporate Debtor raised objections, claiming a pre-existing dispute related to mismanagement by Mr. M.V.

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## Issues and analysis

### Issue 1: Whether there is any pre-existing …

**Ratio:** A pre-existing dispute must relate to the claim made by the Operational Creditor. A

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**Reasoning:** The Tribunal reasoned that the dispute raised by the Corporate Debtor regarding Mr. M.V.

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**Interpretation:** The interpretation emphasizes that a pre-existing dispute must be genuine and

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**Application:** In this case, the Tribunal found that the dispute regarding Mr. M.V.

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## Parties

- **Judges:** TELAPROLU…
- **Appellants:** ITS Technodue…
- **Respondents:** UPI Polymers…; UPI POLYMERS PVT…

## Timeline

- **2016-04-16 — Payments…**: Payments were being…
- **2017-01-20 — Memorandum of…**: MoU stated that the remuneration of the Operational Creditor would be cleared within a…

## 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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