Case Law Details
JHS Svendgaard Limited Vs HT Media Limited (NCLT Delhi)
NCLT Delhi held that this Adjudicating Authority is not a dispute redressal forum. Accordingly, so long as a dispute truly exists in fact and is not spurious, hypothetical and illusory, the adjudicating authority has to reject the application u/s. 9 of the Insolvency and Bankruptcy Code, 2016
Facts- M/s. JHS Svendgaard Laboratories Limited (`Applicant/Operational Creditor’) has filed the present Petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC, 2016) read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 with a prayer to initiate the Corporate Insolvency Resolution Process against M/s. HT Media Limited (‘Respondent’).
Conclusion- It is evident that there has been difference of interpretation between the parties in regard to the overall tenure of the Agreement. Hence, in our considered view, the Application has been pursued for a disputed debt. Needless to say, that this Adjudicating Authority is not a dispute redressal forum.
We consider it worthwhile to refer to the Judgement of the Hon’ble Supreme Court passed in the matter of Mobilox Innovations Private Limited Vs Kirusa Software Private Limited in the CIVIL APPEAL NO. 9405 OF 2017. Wherein, it was held that so long as a dispute truly exists in fact and is not spurious, hypothetical and illusory, the adjudicating authority has to reject the application.
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