2019 (1) TMI 843

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

..... Patra, Advocates. JUDGMENT SUDHANSU JYOTI MUKHOPADHAYA, J. The Appellant preferred application under Section 9 of the Insolvency and Bankruptcy Code, 2016 ('I&B Code' for short) for initiation of the 'Corporate Insolvency Resolution Process' against the Respondent- 'Arcotech Limited'- ('Corporate Debtor'). The Adjudicating Authority (National Company Law Tribunal), Chandigarh Bench, Chandigarh, dismissed the appeal there being a notice of dispute raised by the Respondent and on account of defect as detailed in the impugned judgment. 2. The matter was initially heard by this Appellate Tribunal and by order dated 31st July, 2017, this Appellate Tribunal dismissed the appeal on some other ground. This Appellate Tribunal held that....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e Debtor' for the first time raised dispute relating to delivery of goods in question when admittedly the goods have been delivered to the 'Corporate Debtor' one year ago which the 'Corporate Debtor' received without any demur or protest. 7. On the other hand, according to learned counsel for the 'Corporate Debtor', there is pre-existence of dispute as evident from the enclosures attached with the record. 8. From the record, we find that the parties reached agreement with regard to supply of hot mill with electrical panel and switch cabinets, part of which were dispatched on 27th June, 2016. In reply to Appellant claims, much prior to promulgation of the 'I&B Code', one Mr. Amit Sharma on behalf of the 'Corporate Debtor' by e-mail dat....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

...., 2014, which was subsequently superseded by the parties by another 'supply contract agreement' entered on 9th November, 2015 with regard to entire contract. In Article 40 (Miscellaneous), the parties agreed as follows: "Article 40 MISCELLANEOUS xxx                                                                  xxx                 ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... dated 27th September, 2016. 15. There is another legal notice given by the Appellant on 12th April, 2017 whish relates to 'supply contract' dated 9th November, 2015 and amended agreement dated 27th September, 2016. 16. By notice dated 5th May, 2017, the Appellant invoked Article 36 of the 'Supply Contract' and intimated the 'Corporate Debtor' that they will make every effort to resolve amicably such dispute or difference by mutual consultation within a period of 60 days from the date of the notice. 17. However, we find that the demand notice under Section 8(1) dated 7th February, 2017 was issued earlier, referring to the invoices issued on 13th April, 2014, 2nd June, 2015, 30th September, 2015 and 23rd June, 2016, relating to whic....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....tch cabinets are being dispatched on Monday, 27th June. At the outset, we wish to reaffirm our commitment to purchase the hot mill and to make the payment for the same. You would appreciate to note that both Arcotech and Achenbach had been working on this project since last 3 years on mutual collaboration basis but the project is getting delayed due to one reason or the other. Although we have received in-principal approval from BKB Bank however, some of our apprehensions were yet to be resolved. Accordingly, we have not been able to discuss and put on record our plans for this project including investment and terms and conditions of the financial arrangements with our bankers as per our agreement with them. Further, you had provide....