01/03/2019

Communication of dispute through WhatsApp message prior to demand notice – M/s. Bhandari Hosiery Exports Ltd. & Ors. Vs. M/s. In-Time Garments Pvt. Ltd. & Ors. – NCLAT New Delhi

The demand Notice under Section 8(1) was issued on 29th January, 2018 but much prior to the same by WhatsApp message dated 4th December, 2017, the respondent M/s. In-Time Garments Private Limited (Corporate Debtor) intimated the appellants that the fabrics were defective and, therefore, they are not acceptable.

NCLAT held that there is a pre-existing dispute due to which the application under Section 9 of the Code was not accepted. Learned counsel appearing on behalf of the appellants submits that the respondent committed fraud which vitiates the impugned order dated 4th December, 2018. According to him, the respondent wrongly stated that the defective fabrics were returned by courier which is not the fact. However, such issue cannot be decided by the Adjudicating Authority as the question of return of fabrics is subsequent to that of the pre-existing dispute communicated by WhatsApp message on 4th November, 2017. Such being the position, the Adjudicating Authority having noticed the pre-existing dispute rightly rejected the application under Section 9 of the I&B Code. However, we make it clear that the Adjudicating Authority has not decided nor we have gone into the question whether while returning the fabric fraud is committed or not, which will be decided by the Court of competent jurisdiction.

Communication of dispute through WhatsApp message prior to demand notice – M/s. Bhandari Hosiery Exports Ltd. & Ors. Vs. M/s. In-Time Garments Pvt. Ltd. & Ors. – NCLAT New Delhi Read Post »

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