NCLT Rightly Rejected CIRP Plea of OC as There was a Pre-existing Dispute Between the Parties | NCLT

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  • Last Updated on 31 July, 2023

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CIRP plea

Case Details: Law & Kenneth Saatchi & Saatchi (P.) Ltd. v. Patanjali Paridhan (P.) Ltd. - [2023] 152 taxmann.com 307 (NCLT-Allahabad)

Judiciary and Counsel Details

    • Praveen Gupta, Judicial Member & Ashish Verma, Technical Member
    • Ms Somya Chaturvedi, Sanjeev Kumar Sharma & Arunav Guha Roy, Advs., for the applicant.
    • Pulkit Gupta Adv. for the Respondent.

Facts of the Case

In the instant case, the operational creditor provided services for the production of television commercials (TVC), print shoots and digital content to the corporate debtor in terms of proforma invoice.

The operational creditor raised the final invoice for Rs. 2.06 crore and the corporate debtor made a payment of Rs. 87.50 lakhs. The operational creditor sent reminders to the corporate debtor through e-mails and the corporate debtor asked for an NOC for the purpose of registering TVC under intellectual property.

The corporate debtor also sent a legal notice to the operational creditor, requesting the NOC before making full payment. In response, the operational creditor sent a demand notice to the corporate debtor, who raised the same dispute regarding the non-issuance of NOC by the operational creditor.

The operational creditor filed an instant application under section 9 of the IBC against the corporate debtor for the initiation of the CIRP.

It was noted that as per the clause in the proforma invoice, the corporate debtor was free to make a registration under any of the IPR Acts, and it was also mentioned that the operational creditor would provide the necessary NOC required for such registration.

NCLT Held

The NCLT held that since there was a serious dispute between the parties on the issue of providing NOC for using TVC and the same was raised by the corporate debtor prior to the issuance of the demand notice, the instant application filed by the operational creditor was to be dismissed as non-maintainable.

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