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Judgment
O R D E R
This is an Application for condonation of delay in refiling the Appeal. Grounds taken in paragraphs 3 & 4 are that the Appellant examined all invoices. The invoices marked defective were of the year 2018 and time was taken to verify the invoices and Appellant was unorganised as the Office of the Appellant was not functioning due to lockdown which caused a delay of 117 days in refiling the Appeal. We find sufficient cause to condone the refiling delay.
This Appeal has been preferred against the order dated 01.09.2021 passed by the Adjudicating Authority (National Company Law Tribunal, New Delhi) by which Application under Section 9 of IBC of the Appellant has been dismissed on the ground that there was pre-existing dispute.
Demand Notice was issued on 12.04.2019. Adjudicating Authority noticed in the order that prior to that the Corporate Debtor informed about the poor quality of goods supplied. Hence there was pre-existing dispute.
Learned Counsel for the Appellant challenging the order contends that in the Invoices there was clear speculation that the complained must be made within seven days. It is submitted that complaint was not made within seven days when the invoices were issued which invoices were from the year 2017 to 2019, hence the defence was not entitled to be accepted.
We have heard the submissions of the Appellant and perused the records. Adjudicating Authority in paragraphs 8 (d), (e) & (f) has noticed the defence of the Corporate Debtor to the following facts:
“8...
d.) Furthermore on 19.03.2019, the corporate debtor informed about the poor quality of the goods supplied at the site and also requested to improve the quality of the materials supplied to the applicant.
e.) Despite various remainders and requests on 04.04.2019 and 05.04.2019 vide email informed about the work not being carried out at the site but the applicant neither discuss nor receive any call of the corporate debtor.
f.) It is further stated that on 09.04.2019, the officials of the corporate debtor again emailed the applicant informing that as per the commitment work was to be stated on 07.04.2019 but till 09.04.2019 no work had been started. Further on 15.04.2019, the corporate debtor again requested for the completion of the supply of the goods at the site.” ..
The submissions of the Counsel for the Appellant that in the invoices it was mentioned, that the complaint must be made within seven days. The invoices were of the year 2017 to 2019 and e-mail was sent on 19.03.2019 which was prior to issuance of Demand Notice. The Demand Notice was issued on 12.04.2019 and prior to that Corporate Debtor had issued letters, as noticed by the Adjudicating Authority, raising the dispute.
We are of the view that no error has been committed by the Adjudicating Authority in rejecting Section 9 Application on the ground of pre-existing dispute.
There is no merit in the present Appeal. The Appeal is dismissed.