# In the matter of Vinay Wire and Poly Products Private Limited

> NCLT judgment dated 2023-07-06. Citation: TCN-2023-NCLT-02627. The case involves an application filed under Section 9 of the Insolvency & Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 6 Jul 2023
- **Citation:** TCN-2023-NCLT-02627
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/vinay-wire-and-poly-products-private-limited-e6b7f48b

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency & Bankruptcy Code, 2016 by Prayag Polytech Private Limited (Operational Creditor) against Vinay Wire and Poly Products Private Limited (Corporate Debtor) for initiating the Corporate Insolvency Resolution Process (CIRP) due to default in payment of Rs. 37,10,654/- plus interest. The Operational Creditor claimed to have supplied master batches to the Corporate Debtor, with outstanding invoices dating back to 2018. The Corporate Debtor contested the application, citing disputes over the quality of goods and the absence of purchase orders. The Corporate Debtor also claimed to have made partial payments after receiving a demand notice.

## Facts

Prayag Polytech Private Limited (Operational Creditor) filed an application under Section 9 of the Insolvency & Bankruptcy Code, 2016, against Vinay Wire and Poly Products Private Limited (Corporate Debtor) for default in payment of Rs. 37,10,654/- plus interest. The Operational Creditor claimed to have supplied master batches to the Corporate Debtor since 1996, with three invoices from 2018 remaining unpaid. The Corporate Debtor made partial payments of Rs. 7,00,000/- after receiving a demand notice dated 15.05.2019, leaving an outstanding amount of Rs. 32,64,655/-. The Corporate Debtor contested the application, claiming a dispute over the quality of goods and the absence of purchase orders. The Corporate Debtor alleged that the goods supplied were defective and

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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 pre-existing dispute is a crucial factor in determining the

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**Reasoning:** The court reasoned that the Corporate Debtor raised the issue of defective goods only

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**Interpretation:** The court interpreted the requirement of a 'pre-existing dispute' to mean a

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**Application:** The court applied the ratio to the facts of the case, finding that the

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## Parties

- **Judges:** Praveen…; Ashish…
- **Appellants:** Prayag Polytech…
- **Respondents:** Vinay Wire and…

## Timeline

- **1996-01-01 — Supply of Maste…**: The Applicant/Operational Creditor used…
- **2018-01-01 — Supply of…**: In 2018, the Applicant/Operational Creditor supplied goods to Corporate debtor and 3…

## 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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