NCLT Rightly Rejected CIRP Plea of OC as There was a Pre-existing Dispute Between the Parties | NCLT

  • News|Blog|Insolvency and Bankruptcy Code|
  • 2 Min Read
  • By Taxmann
  • |
  • Last Updated on 31 July, 2023

CIRP plea

Case Details: Law & Kenneth Saatchi & Saatchi (P.) Ltd. v. Patanjali Paridhan (P.) Ltd. - [2023] 152 taxmann.com 307 (NCLT-Allahabad)

Judiciary and Counsel Details

    • Praveen Gupta, Judicial Member & Ashish Verma, Technical Member
    • Ms Somya ChaturvediSanjeev Kumar SharmaArunav Guha Roy, Advs., for the applicant.
    • Pulkit Gupta Adv. for the Respondent.

Facts of the Case

In the instant case, the operational creditor provided services for the production of television commercials (TVC), print shoots and digital content to the corporate debtor in terms of proforma invoice.

The operational creditor raised the final invoice for Rs. 2.06 crore and the corporate debtor made a payment of Rs. 87.50 lakhs. The operational creditor sent reminders to the corporate debtor through e-mails and the corporate debtor asked for an NOC for the purpose of registering TVC under intellectual property.

The corporate debtor also sent a legal notice to the operational creditor, requesting the NOC before making full payment. In response, the operational creditor sent a demand notice to the corporate debtor, who raised the same dispute regarding the non-issuance of NOC by the operational creditor.

The operational creditor filed an instant application under section 9 of the IBC against the corporate debtor for the initiation of the CIRP.

It was noted that as per the clause in the proforma invoice, the corporate debtor was free to make a registration under any of the IPR Acts, and it was also mentioned that the operational creditor would provide the necessary NOC required for such registration.

NCLT Held

The NCLT held that since there was a serious dispute between the parties on the issue of providing NOC for using TVC and the same was raised by the corporate debtor prior to the issuance of the demand notice, the instant application filed by the operational creditor was to be dismissed as non-maintainable.

List of Cases Reviewed

List of Cases Referred to

Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.

Leave a Reply

Your email address will not be published. Required fields are marked *

Everything on Tax and Corporate Laws of India

To subscribe to our weekly newsletter please log in/register on Taxmann.com

Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied