NCLAT On Pre-Existing Disputes: Outright Dismissal Of CIRP Application When There Is Pre-Existing Dispute

On 28.09.2022, the National Company Law Appellate Tribunal Bench comprising of the Justices Ashok Bhushan and Barun Mitra, Member upheld the decision of NCLT, Kolkata rejecting the Application under Section 9 of the Insolvency and Bankruptcy Code, 2016 filed against Heavy Engineering Corporation by G4S Secure Solutions Private Limited on the ground of pre-existing dispute between parties prior to issue of the demand notice. ASG appearing on behalf HEC argued that there are subsisting and unresolved 'Pre-existing dispute' between the G4S and HEC at the time of filing of the Section 9 IBC Application. The NCLAT observed that the materials brought on the record before the NCLT, Kolkata and NCLAT clearly indicate that there was pre-existing dispute with regard to payment of amount claimed by G4S and G4S was duly communicated of the said dispute even prior to issuance of demand notice. Case: G4S Secure Solutions Private Limited v. Heavy Engineering Corporation Limited Court: National Company Law Appellant Tribunal at New Delhi Advocates for HEC: Before NCLAT - Ms. Madhavi Divan, ASG with Mr. Amit Meharia, Ms. Tannishtha Singh, Ms. Vidushi Tripathi, Mr. Vishesh Kalra and Ms. Aishani Narain, Advocates - Meharia & Company Before NCLT - Ms. Madhavi Divan, ASG with Mr. Amit Meharia, Ms. Urmila Chakraborty, Ms. Tannishtha Singh, Ms. Paramita Banerjee and Ms. Amrita Das Advocates - Meharia & Company Click here to read/ download NCLT order