Rakesh Dalpatram Panchal Vs Kisaan Steels Pvt. Ltd. (NCLAT Delhi)
NCLAT Rejects Pre-Existing Dispute Claim Because Consequence Sheet Quantified Undisputed Liability; Conditional Settlement Offer Cannot Defeat CIRP Because Debt Was Already Crystallized; NCLAT Sustains Insolvency Proceedings Because Quality and Delay Issues Were Already Accounted For; CIRP Admission Upheld Because Corporate Debtor Admitted Liability After Adjusting Penalties.
In , the National Company Law Appellate Tribunal (NCLAT), Delhi Bench, dismissed an appeal filed by the suspended director of Gemini Engi. Fab. Private Limited against the admission of a Section 9 application under the Insolvency and Bankruptcy Code, 2016 (IBC) filed by Kisaan Steels Pvt. Ltd.
The dispute arose from multiple purchase orders issued between December 2021 and June 2022 for the supply of forgings, tubesheets, flanges, and related materials. The Operational Creditor claimed that goods were supplied in accordance with the purchase orders and that the Corporate Debtor failed to clear outstanding dues amounting to more than Rs. 6.13 crore. The Operational Creditor issued a demand notice under Section 8 of the IBC on 1 July 2023.
The Corporate Debtor disputed the claim and argued that there were pre-existing disputes regarding delay in delivery and defective goods. It contended that the delays caused losses in projects and led to penalties from end-users. According to the Corporate Debtor, multiple communications had been exchanged before issuance of the demand notice, showing disputes relating to quality, liquidated damages, penalties, and reconciliation of accounts.
