The National Company Law Appellate Tribunal (NCLAT) has set aside a plea to initiate insolvency proceedings against Intex Technologies India Limited by one of its creditors.
The move has been taken after observing a pre-existence of dispute over the claims.
Earlier in September, 2019, National Company Law Tribunal (NCLT) Delhi had rejected the application filed by Avalon Sports and Media on the same ground, following which the issue was challenged before the NCLAT by the firm.
As per the appellate tribunal, since there was a pre-existing dispute between Intex Technologies and the firm, NCLT has rightly rejected the plea made by the firm.
The NCLT had observed that there was an exchange of e-mails 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 2.32 million.
NCLT noted that in the e-mail dated December 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 Lion, owned by Intex Technologies.
Mobile wallet company Oxigen Services was introduced as a sponsor by Avalon Sports and Media, which had entered into an brand promotion services commission agreement in April 2016.