NCLAT New Delhi Dismisses Korea Trade Insurance Corp's Insolvency Plea Against Amrit Polychmen
The National Company Law Appellate Tribunal (NCLAT), Principal Bench, New Delhi, comprising Justice Ashok Bhushan (Chairperson) and Barun Mitra (Member-Technical), has dismissed the Korea Trade Insurance Corporation (Ksure) plea for insolvency of Amrit Polychmen, saying that the Ksure was well aware of the pre-existing dispute before stepping into the shoes of JTC. Amrit Polychem...
The National Company Law Appellate Tribunal (NCLAT), Principal Bench, New Delhi, comprising Justice Ashok Bhushan (Chairperson) and Barun Mitra (Member-Technical), has dismissed the Korea Trade Insurance Corporation (Ksure) plea for insolvency of Amrit Polychmen, saying that the Ksure was well aware of the pre-existing dispute before stepping into the shoes of JTC.
Amrit Polychem Pvt. Ltd. (APL) placed three purchase orders with JT Corporation (JTC), Korea, for purchasing some chemicals. The appellant, Korea Trade Insurance Corporation (Ksure), insured the JTC against the buyer's default.
APL paid for the second consignment, but the dispute arose between the parties with regard to the first shipment. APL alleged that the JPC failed to deliver the shipment, thereby causing losses to the APL. Therefore, the APL withheld the payment for the third consignment to adjust the losses caused.
However, Ksure reimbursed the JTC under the insurance policy and received the assignment of debt by way of Letter of Assignment (LoA). And the Ksure issued a section 8 IBC demand notice to the APL, in response to which the APL disputed the claim by asserting the prior losses.
The appellant filed a section 9 application before the NCLT, Mumbai Bench, which dismissed the application, citing the pre-existing dispute. Therefore, the Ksure preferred the appeal before the NCLAT, New Delhi.
The NCLAT observed that the email exchanged between the parties establishes that there was some dispute with regard to non-delivery of the shipment under the first invoice, and the same was adjusted under the third purchase.
The bench observed that Ksure was aware of these disputes before the assignment of the debt. And the respondent's reply to the demand notice clearly demonstrates denial of liability, and it also invalidates the LoA.
Relying on the ruling of Mobilox Innovations Private Limited vs. Kirusa Software Pvt Ltd (2018) 1 SCC 353, the bench dismissed the petition due to the existence of a pre-existing dispute.
Lastly, the tribunal granted liberty to Ksure to pursue an alternative remedy before an appropriate civil forum.
Case Name: Korea Trade Insurance Corporation (Ksure) v. Amrit Polychem Pvt. Ltd
Case No.: Company Appeal (AT) (Insolvency) No. 1383 of 2023
Coram: Justice Ashok Bhushan (Chairperson) and Barun Mitra (Member-Technical),
For Appellant: Mr. Sarthak Varma, Sr. Advocate with Mr. Manish Dhir Mr. Shantanu Parmar, Mr. Balram, Mr. Vivek Tyagi, Advocates.
For Respondent: Mr. Abhijeet Sinha, Sr. Advocate with Ms. Prachi Johri, Mr. Saikat Sarkar, Ms. Heena Kochar, Ms. Mrigangi Parul, Advocates
Judgment Date: 15.10.2025