Morex Corporation Limited Vs Jindal Poly Films Ltd (NCLAT Delhi)
NCLAT Delhi held that dismissal of section 9 application under the Insolvency and Bankruptcy Code upheld a case of pre-existing dispute arises out of termination of contract. Accordingly, appeal rejected and order of adjudicating authority upheld.
Facts- The present appeal filed under Section 61 of Insolvency and Bankruptcy Code 2016 by the Appellant arises out of the Order dated 14.12.2023 passed by the Adjudicating Authority (National Company Law Tribunal, Allahabad Bench, Prayagraj). By the impugned order, the Adjudicating Authority has rejected the Section 9 application filed by the Appellant-M/s Morex Corporation Limited. Aggrieved by the impugned order, the present appeal has been preferred by the Appellant.
Conclusion- Held that the Adjudicating Authority has not committed any error in holding the contract termination to be a pre-existing dispute which contractual dispute figures prominently in the Notice of Dispute issued by the Corporate Debtor. Keeping in view that the time span being only about 45 days from the date of cancellation of the contract on 01.04.2020 to the issue of Demand Notice on 15.05.2020, we are of the view that raising the ground of cancellation of contract as a pre-existing dispute in the Notice of Dispute of 20.05.2020 suffices for the purpose of Section 9(5)(ii)(d) of IBC. The Adjudicating Authority did not commit any error in taking cognisance of the termination of the contract as ground of pre-existing dispute.
