Indo Alusys Industries Limited Vs SMW Metal Private Limited (NCLAT Delhi)
National Company Law Appellate Tribunal (NCLAT), Delhi Bench, has dismissed an appeal filed by Indo Alusys Industries Limited (the ‘Operational Creditor’ or ‘Appellant’) against SMW Metal Private Limited (the ‘Corporate Debtor’ or ‘Respondent’). The NCLAT’s decision, pronounced on a date not specified in the excerpt but upholding an NCLT order from February 12, 2019, affirms that pre-existing and genuinely contested disputes between parties preclude the initiation of insolvency proceedings under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC).
The case stemmed from cross-applications filed under Section 9 of the IBC by both parties, arising from long-standing business dealings involving the sale and purchase of Aluminum Extrusions and Ingots. Indo Alusys Industries Ltd. claimed operational dues of Rs. 13,76,36,931.50/- from SMW Metal Private Limited. Conversely, SMW Metal Private Limited, in its own cross-petition, asserted a principal amount of Rs. 2,43,34,100/- plus interest, claiming a total liability exceeding Rs. 4 crores from Indo Alusys.
The Adjudicating Authority (National Company Law Tribunal – NCLT), New Delhi Bench, heard both petitions jointly and, in a common order dated February 12, 2019, dismissed both applications. Only Indo Alusys Industries Limited chose to appeal this dismissal before the NCLAT.
