Bhushan Power & Steel Limited Vs A.G. Pipes Private Limited (NCLAT Delhi)
An appeal was filed against the dismissal of a Section 9 Insolvency and Bankruptcy Code (IBC) petition concerning an alleged operational debt of approximately ₹1.49 crore arising from supply of steel products under various purchase orders and invoices. The appellant claimed that goods were supplied to the respondent’s units under different SAP codes, with outstanding dues of ₹1,42,02,230 and ₹7,02,527 respectively, and that demand notices issued in 2019 and 2021 were not satisfied despite acknowledgment of supplies and ledger entries. It was also contended that the respondent raised no valid pre-existing dispute and introduced new defenses belatedly.
The appellant highlighted that a demand notice dated 07.10.2021 was issued along with supporting documents such as invoices, goods receipts, and ledger accounts. The respondent, however, denied liability and claimed that certain amounts related to rejected material, while also asserting that A.G. Pipes (proprietorship) and A.G. Pipes Private Limited are separate legal entities. It was further argued that most invoices pertained to the proprietorship concern, not the corporate debtor.
The appellant relied on earlier correspondence, including a demand notice dated 04.03.2019 and its reply, arguing that no genuine dispute existed prior to the demand notices. It also contended that later defenses regarding separate entities and invoice validity were afterthoughts and not supported by earlier records or replies. Additionally, it was argued that no suit or arbitration was pending, and therefore no pre-existing dispute existed under the IBC framework.
