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Failure of reconciliation of accounts qualifies as pre-existing dispute: NCLAT Delhi

Case Law Details

TaxGuru Citation
2025 taxguru.in 2437
Case Name
Rajendra Bisht Vs Satkar Logistics Pvt Ltd. (NCLAT Delhi)
Date of Judgement/Order
Only available for paid members
Courts
Delhi NCLAT, NCLAT
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Rajendra Bisht Vs Satkar Logistics Pvt Ltd. (NCLAT Delhi)

NCLAT Delhi held that failure of reconciliation of accounts qualifies as pre-existing dispute. Thus, order admitting application u/s. 9 of Insolvency and Bankruptcy Code, 2016 ignoring pre-existing dispute is not justified. Hence, order is set aside.

Facts- This Appeal has been filed by the erstwhile promoter and director of M/s Ambassador Logistics Pvt. Ltd. (Corporate Debtor) assailing the order dated 11.02.2022 of Ld. NCLT, New Delhi, Court-III in C.P.(IB) No. 1924/ND/2019 whereby the Corporate Debtor was admitted into Corporate Insolvency Resolution Professional on an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 filed by the M/s Satkar Logistics Pvt. Ltd. (Operational Creditor).

Conclusion- Hon’ble Supreme Court in the case of Sabarmati Gas Limited v. Shah Alloys Limited, (2023) 3 SCC 229 has held that failure of reconciliation of accounts qualifies as a pre-existing dispute.

Held that there existed a dispute between the Operational Creditor and the Corporate Debtor prior to the issuance of notice under Section 8 of the IBC, 2016, which is evidenced by the emails exchanged between the parties. The Ld. NCLT has erred in ignoring the pre-existing dispute and admitting the Corporate Debtor into CIRP. The impugned order of the Ld. NCLT is set aside and the appeal is allowed.

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