Tremco CPG (India) Private Limited Vs Brite Proofings Private Limited (NCLT Mumbai)
NCLT Mumbai held that mere issuance of debit notes or raising of reconciliation issues at a later stage does not establish a “pre-existing dispute” within the meaning of Section 8(2)(a) of the Code. Accordingly, application u/s. 9 of Insolvency and Bankruptcy Code admitted as debt and default proved.
Facts- This Company Petition was filed on 03.12.2024 under Section 9 of the Insolvency and Bankruptcy Code, 2016 (‘IBC’) read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 (‘AA Rules’) by Tremco CPG (India) Private Limited, the Operational Creditor (OC), for initiating Corporate Insolvency Resolution Process (CIRP) of Brite Proofings Private Limited, the Corporate Debtor (CD). The total amount of default alleged is Rs. 18,74,53,201.59/-.
Conclusion- Held that the emails sent by the CD in respect of pre-existing dispute claiming that the quality of the goods are in bad condition for such claim the CD has not placed any lab report, evidence of defective quality of goods and alleged quality issues were raised only after the invoices were accepted and substantial part-payments were made without demur. The debit note relied upon is unilaterally raised by the Corporate Debtor and there is no material on record to show that the Operational Creditor accepted the same as valid adjustment against its claim. Mere issuance of debit notes or raising of reconciliation issues at a later stage does not establish a “pre-existing dispute” within the meaning of Section 8(2)(a) of the Code.
