The National Company Law Appellate Tribunal (NCLAT), New Delhi bench comprising of Justice Anant Bijay Singh and Ms. Shreesha Merla was hearing a case where the bench held that If there is an existence of a dispute between the parties, the Court doesn't wish to go into other issues.
Aggrieved by the Order dated 14.08.2019, passed by the Adjudicating Authority (National Company Law Tribunal, Ahmedabad Bench) M/s. Equipment Planet/‘the Operational Creditor’ preferred this Appeal. By the Impugned Order, the Adjudicating Authority had dismissed the Application filed by the ‘Operational Creditor’ under Section 9 of the Insolvency and Bankruptcy Code, 2016.
The Appellate Tribunal bench noted that the brief point which falls for consideration in this appeal was whether there is any ‘Pre-Existing Dispute’ between the parties and if there is any amount ‘due and payable’.
The facts of the present case need to be examined in the light of the law laid down by the Hon’ble Supreme Court in Mobilox Innovations Private Limited v. Kirusa Software Private Limited, REED 2017 SC 09545.
The dispute raised by the Corporate Debtor was not a spurious or legally feeble argument but was substantiated by sufficient evidence. The Appellate Authority was satisfied by the material on record that there was a ‘Pre-Existing Dispute’ prior to the issuance of the Demand Notice and hence the Appellate Authority were of the considered view that the ratio of Mobilox Innovations Private Limited, REED 2017 SC 09545 was squarely applicable to the facts of this case.
The Appellate Tribunal held that there was an existence of a dispute between the parties, Court did not wish to go into the other issues raised regarding the Partnership Deed. For all the aforenoted reasons, the Appeal failed.
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