Samman Lal Sher Singh Pvt. Ltd. Vs RS Print Solution Pvt. Ltd. (NCLAT Delhi)
Summary: NCLAT Delhi dismissed the Operational Creditor’s appeal against the order dated 27.03.2025 rejecting its petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 on the ground of a pre-existing dispute. The parties had a commercial relationship of more than 15 years, and the Operational Creditor raised invoices between 01.08.2023 and 26.09.2023 amounting to ₹6,58,38,774/-. After part-payments of ₹4,30,03,081/-, disputes arose concerning allegedly inferior-quality goods, corporate discounts, warehousing charges and reconciliation of accounts. The Operational Creditor contended that these objections were afterthoughts and relied on the Corporate Debtor’s ledger and subsequent payments as acknowledgment of liability.
NCLAT, however, noted that before issuance of the Section 8 demand notice dated 25.10.2024 for ₹2,44,27,407/-, the Corporate Debtor had already raised disputes by email dated 19.10.2024 concerning quality, discounts and other adjustments. The Tribunal held that Section 8 requires only the existence of a dispute before receipt of the demand notice and found that the disputes regarding reconciliation of accounts could not be treated as spurious or illusory. Relying particularly on Sabarmati Gas Limited Vs Shah Alloys Limited, NCLAT observed that unresolved reconciliation of accounts can qualify as a pre-existing dispute and that the correctness of such dispute is ultimately a matter of evidence.
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