Subhash N Dawar Vs Nanjing Maohj Information & Technology Co. Ltd. (NCLAT Delhi)
In a significant ruling for operational creditors, the National Company Law Appellate Tribunal (NCLAT), Delhi, has dismissed an appeal filed by Subhash N Dawar, representing the suspended management of M/s Alliance Embroidery Machine Private Limited (‘Corporate Debtor’). The NCLAT’s decision, issued on April 10, 2024, upheld the National Company Law Tribunal (NCLT) Ahmedabad’s order admitting an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC), filed by Nanjing Maohj Information & Technology Co. Ltd. (NMIT) – the ‘Operational Creditor’. The NCLAT found that the Corporate Debtor’s arguments, centered on a purported dispute with an intermediary company, lacked substance and were not indicative of a genuine pre-existing dispute.
The case originated from the supply of Yuemei laser bridge and computerized embroidery machines by NMIT, a Chinese company, to the Corporate Debtor. NMIT claimed an outstanding debt of USD 773,696.90 for these supplies. While an initial advance was made, the Corporate Debtor allegedly failed to make subsequent payments. After repeated follow-ups and a demand notice, NMIT initiated Section 9 proceedings against Alliance Embroidery Machine Private Limited, which the NCLT admitted. This appeal by Subhash N Dawar challenged that admission.
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