Though the running account was to be reconciled and settled, there was an email sent prior to issuance of the Demand Notice under Section 8 asking the Operational Creditor to take back the rejected material, clearly reflecting a Pre-Existing Dispute – Anshul Vashistha Shareholder & Director of M/s. Saturn Prefab India Pvt. Ltd Vs. M/s. Jayhind Steel Traders – NCLAT New Delhi
NCLAT held that on going through the various submissions made by the parties, a clarity is emerging that there are multiple date of default, there is an existence of dispute on balance dues, the actual amount due needs to be reconciled and reflected. The Operational Creditor is claiming that the Debt due is more than Rs. 1 lac. If, it may also be due for payment as it will be becoming the job of IRP to reconcile and get the disputed amount segregated and the claim can be counted provided the application meets the criteria of Section 8 & 9 of the Code. The Object of the Code is not recovery of money but to bring out of insolvency and maximization of value of assets of the Corporate Debtor. It is also very much clear that if there is a dispute as per relevant provisions of the Code, it is incumbent on the Adjudicating Authority to reject the petition/application as per the provisions of the Section 9 of the Code. It is also very much clear in this case that there is a dispute of the Debt and dispute resolution mechanism is also provided in the purchase order. Since the I&B Code, 2016 debars the application of the Code for recovery of money as well as if there is a dispute then also petition/application requires to be rejected.
