Schneider Electric India Private Limited Vs Sarkun Solar Private Limited (NCLT Delhi)
NCLT Delhi held that application under section 9 of the Insolvency and Bankruptcy Code, 2016 [IBC] for initiation of CIRP not maintainable since there exists genuine and long-standing disputes. Accordingly, petition dismissed.
Facts- This instant application was filed by Schneider Electric India Private Limited (applicant/ operational creditor) u/s. 9 of the Insolvency and Bankruptcy Code, 2016 with a prayer to initiate Corporate Insolvency Resolution Process in respect of Sarkun Solar Private Limited (Formerly known as Photon Vidyut Private Limited) (respondent/ corporate debtor) for defaulting the payment of total amounting to Rs. 19,65,42,069/- inclusive of interest of 11 % p.a. to be paid by the Corporate Debtor.
Conclusion- Supreme Court in the case of Mobilox Innovations Pvt. Ltd. v. Kirusa Software Pvt. Ltd. has held that if there exists a plausible dispute prior to the issuance of the demand notice, the petition under Section 9 of the IBC is not maintainable.
Held that the Respondent/ Corporate Debtor has raised multiple issues regarding defective supplies, particularly faulty inverters causing significant losses. Despite repeated emails highlighting these defects, the Applicant failed to take corrective action and continued to demand payment of the disputed amount. This conduct reflects an attempt to misuse the insolvency process for recovery of a contested claim, contrary to the objectives of the IBC. The existence of genuine, long-standing disputes renders the present petition liable to be dismissed.
