K. Lakshmi Narayana Vs Hindustan Unilever Ltd. (HUL) (NCLAT Delhi)
National Company Law Appellate Tribunal (NCLAT) upheld the Adjudicating Authority’s decision to reject an application under Section 9 of the Insolvency and Bankruptcy Code (IBC) against Hindustan Unilever Ltd. (HUL). The application, filed by K. Lakshmi Narayana as an Operational Creditor, was dismissed due to the claim amount falling below the mandatory threshold of Rs. 1 crore. The tribunal found that only a few invoices from 2017 to 2018 were within the limitation period, and even with interest claims, the amount did not meet the required threshold. Additionally, the tribunal noted the presence of a pre-existing dispute, as evidenced by a legal notice issued by the appellant on January 17, 2019.
The appellant contended that there was a running account between the parties, and a 24% interest charge should be applied, which would increase the claim amount above Rs. 1 crore. However, the tribunal found no contractual or purchase order basis supporting this interest claim. The tribunal also pointed out that the appellant had earlier proposed arbitration for resolving the dispute, further establishing the existence of a prior disagreement. Given these findings, the NCLAT upheld the Adjudicating Authority’s decision, stating that the Section 9 application was rightly rejected. However, it clarified that the appellant is free to seek other legal remedies.
