# GLS Films Industries Private Limited vs. Chemical Suppliers India Private Limited

> SC judgment dated 2026-04-09. Citation: TCN-2026-SC-00060. Chemical Suppliers India Private Limited (Operational Creditor) filed a Section 9 IBC application…

- **Court:** SC
- **Order date:** 9 Apr 2026
- **Citation:** TCN-2026-SC-00060
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/gls-films-industries-private-limited-vs-chemical-suppliers-india-private-limited-v9hw0

## Summary

### Background

Chemical Suppliers India Private Limited (Operational Creditor) filed a Section 9 IBC application against GLS Films Industries Private Limited (Corporate Debtor) for an unpaid operational debt of ₹2,92,93,223/-. The Corporate Debtor claimed a pre-existing dispute regarding defective supplies and counter-claimed losses, leading to the NCLT dismissing the application.

## Facts

Chemical Suppliers India Private Limited (Respondent) supplied chemicals to GLS Films Industries Private Limited (Appellant).

The Respondent claimed ₹2,92,93,223/- was due and payable as of 26.05.2021.

The Appellant claimed the Respondent supplied defective solvent consignments on 10.04.2021, 11.04.2021, 20.04.2021, 23.04.2021, and 21.06.2021.

The Appellant informed the Respondent about defective supplies and losses of ₹6.50 crore, requesting a credit note for ₹1.66 crore via a letter dated 10.12.2020.

The Respondent issued a demand notice under Section 8 of the IBC on 11.11.2021.

The Appellant disputed the claim via email on 06.12.2021, citing pre-existing disputes and referring to a credit note for ₹1,66,89,770/-.

…

## Issues and analysis

### Issue 1: Whether the NCLAT was justified in reversing the NCLT's decision to dismiss the Section 9 …

**Ratio:** A plausible pre-existing dispute, not spurious, hypothetical, or illusory, is sufficient

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**Reasoning:** The Supreme Court found that the appellant had consistently raised issues of defective

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**Interpretation:** The existence of a dispute means there is no consensus on the debt or its

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**Application:** The NCLAT erred by treating the credit note as resolving the dispute and by not

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## Parties

- **Judges:** SANJAY KU…; R. MAHADEV…
- **Respondents:** GLS Films…; Chemical Suppliers…
- **Other parties:** Ankur Agg…

## Timeline

- **2020-12-10 — Defective Supplies…**: Appellant wrote to Respondent detailing defective supplies made between September-October…
- **2021-04-10 — First Defective…**: Respondent supplied a consignment of solvent to Appellant, which was found to be…

## 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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