# 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-03424. 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-03424
- **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-2019-9c070543

## 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 the Corporate Insolvency Resolution Process (CIRP) against UPI Polymers Private Limited (Corporate Debtor). The Operational Creditor claimed that the Corporate Debtor failed to make payments for goods and services provided, leading to an outstanding amount of Rs.1,93,44,700/-. The Corporate Debtor contested the application, raising objections regarding the completeness of the petition, pre-existing disputes, and the liability of 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 CIRP against UPI Polymers Private Limited (Corporate Debtor) for non-payment of dues amounting to Rs.1,93,44,700/-. 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 never made payments as per the invoices, only on an ad hoc basis. The Corporate Debtor raised objections, claiming the petition was incomplete, there was a pre-existing dispute related to mismanagement by Mr.M.V.Bhushanam (former director), and the debt was not due. Mr.M.V.Bhushanam was allegedly

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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 and must

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**Reasoning:** The Tribunal noted that the dispute raised by the Corporate Debtor regarding

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**Interpretation:** The interpretation of 'pre-existing dispute' requires that the dispute must be

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**Application:** In this case, the Tribunal found that the dispute raised by the Corporate

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## Parties

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

## Timeline

- **2016-03-28 — Board Me…**: Day-to-day operations entrusted to Mr.M.V.Bhushanam, payments to all Directors kept under…
- **2017-01-20 — Memorandum of…**: Agreement that the remuneration of the Operational Creditor would be cleared within a…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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