NCLAT Sets Aside Plea To Initiate Insolvency Proceedings Against Intex Technologies
The National Company Law Appellate Tribunal has dismissed a plea to initiate insolvency proceedings against smartphone and mobile accessories maker Intex Technologies India Ltd. by one of its creditors.
A three-member NCLAT bench headed by Chairperson Justice SJ Mukhopadhaya upheld the order of the NCLT Delhi, which had dismissed the plea of the operational creditor after observing a pre-existence of dispute over the claims.
Earlier, on Sept. 1, 2019, the National Company Law Tribunal Delhi had rejected the application filed by Avalon Sports and Media on the same ground, following which it was challenged before the NCLAT by the firm.
"We find no merit in this Appeal and the same is accordingly dismissed," said the NCLAT.
The appellate tribunal observed that there was a pre-existing dispute between the firm and Intex Technologies, and the NCLT has rightly rejected it.
"For the said reason, if documents have been placed showing that there is a 'pre-existence of dispute' with regard to the alleged claim, the Adjudicating Authority (NCLT) without going into the merit of the case, had rightly rejected the application under Section 9 on the ground that there is 'pre-existence of dispute'," the NCLAT said.
The NCLT had noticed that the e-mails were exchanged between the parties before filing of application under Section 9 of the Insolvency and Bankruptcy Code, 2016 by the operational creditor for initiation of insolvency resolution process against Intex Technologies over a claim of Rs 23.23 lakh.
In the e-mail dated Dec. 3, 2018, Intex disputed the claim on the ground that the payment of the commission is in line with the 'terms & conditions' of the agreement reached between them.
The dispute was related to advertising of IPL team Gujarat Lions, which was owned by Intex Technologies.
Mobile wallet company Oxigen Services was brought as an sponsor by Avalon Sports and Media, which had entered into a brand promotion services commission agreement in April 2016.