CIRP admitted as corporate debtor raised dispute w.r.t. quality of goods after receiving notice to shrug off liability
- Blog|News|Insolvency and Bankruptcy Code|
- 2 Min Read
- By Taxmann
- |
- Last Updated on 15 November, 2021
Latest from Taxmann
Case Details: Huangyan Zhedong Rubber Auxiliary Imp./Exp. Co. Ltd. v. Dalmia Polymers LLP - [2021] 132 taxmann.com 50 (NCLT - New Delhi)
Judiciary and Counsel Details
-
- Dr. Deepti Mukesh, Judicial Member and Ms. Sumita Purkayastha, Technical Member
- Sachin Jain, Adv. for the Applicant.
- Kamal Ahuja, Adv. for the Respondent.
Facts of the Case
The Applicant-operational creditor supplied rubber and chemical goods to the corporate debtor company and raised invoices. In the instant case, the corporate debtor failed to make full payment.
Thus, a demand notice was issued under section 8 of the Insolvency and Bankruptcy Code, 2016. In reply, the corporate debtor raised a dispute regarding inferior goods supplied by operational creditors and disputes regarding timelines of supply causing irreparable harm to the business of the corporate debtor.
NCLT Held
It was noted that the corporate debtor raised a dispute after receipt of demand notice, and no correspondence prior in time to demand notice about disputes had been brought on record. Thus, the defence taken by the corporate debtor was an afterthought to shrug off liability and was not covered in pre-existing dispute.
In view of aforesaid, it could be concluded that there existed an operational debt and corporate debtor committed default in discharging said debt and therefore, an application filed under section 9 of the Insolvency and Bankruptcy Code, 2016 was to be admitted.
List of Cases Referred to
-
- Mobilox Innovations (P.) Ltd. v. Kirusa Software (P.) Ltd. [2017] 85 taxmann.com 292/144 SCL 37 (SC) (para 10).
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
Latest Books
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
