KANODIA TECHNOPLAST LIMITED Vs. A.P. TRADING COMPANY

JUDGEMENT

(1.) The present petition has been filed by the petitioner under Sec. 11 (6) of the Arbitration and Conciliation Act, 1996 seeking appointment of Arbitrator for adjudication of disputes with the respondent.

(2.) Petitioner-company, registered under the Companies Act, 1956, claims to be engaged in the business of making laminated pouches for mouth freshners, tobacco, pan masala and other food items. It claims to have come into business with respondent, a sole proprietorship firm, in April, 2017 for supply of paper.

(3.) According to petitioner, on 18/9/2019, respondent filed an application before the National Company Law Tribunal (NCLT) to initiate Corporate Insolvency Resolution Process against the petitioner and claimed an amount of Rs.8, 56,07,464.00 in default. Upon being served with the notice of the said application, petitioner on 14/11/2019 filed its reply before the NCLT challenging the claims raised by the respondent herein. Further claimed by petitioner that during pendency of those proceedings, respondent approached the petitioner to amicably resolve the matter and parties entered into a Memorandum of Understanding dtd. 2/3/2020, wherein schedule for making the payments was agreed upon between the parties. Pursuant thereto, the respondent withdrew the application before NCLT on 3/3/2020.