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ARTICLE · 16 OCTOBER 2024

NCLAT: Application Under Section 9 Of IBC Cannot Be Filed For Recovery

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On September 10, 2024, the National Company Law Appellate Tribunal ("NCLAT") in M/s Agarwal Foundries Private Limited v. POSCO E&C India Private Limited, [Company Appeal (AT) (Insolvency) No. 1492 of 2024]...

IndiaInsolvency/Bankruptcy/Re-Structuring
Aayush Kumar
Aayush Kumar
Anoushka Goel
Anoushka Goel
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On September 10, 2024, the National Company Law Appellate Tribunal ("NCLAT") in M/s Agarwal Foundries Private Limited v. POSCO E&C India Private Limited, [Company Appeal (AT) (Insolvency) No. 1492 of 2024], held that applications under section 9 of the Insolvency and Bankruptcy Code, 2018 ("IBC") cannot be filed for recovery for money and the same amounts to misuse of the provisions under IBC.

Facts:

The appellant, M/s Agarwal Foundries Private Limited, was a supplier of TMT bars and the respondent, POSCO E&C India Private Limited, sought quotation for supply of the same to its contractor, Empathy Infra & Engineering Private Limited. Thereafter, the bars were supplied to the contractor and invoices were raised against which the payment remained outstanding.

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