NCLAT dismisses insolvency plea against Wipro
Wipro Ltd. A two-member Chennai bench of the appellate tribunal held earlier that there was a pre-existing dispute over the payment between Wipro and the petitioner and observed that the Insolvency and Bankruptcy Code was not framed for being a «mere recovery legislation for creditors».
The National Company Law Appellate Tribunal (NCLAT) has upheld the order of the NCLT.
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The order was challenged by the Delhi-based operational creditor, a manufacturer of 'LT/ HT Electric Panels' before the appellate body NCLAT.
However, the NCLAT also dismissed it after observing, «We are satisfied that a 'dispute' truly existed for the Respondent Company (Wipro) to have withheld 3% of the total invoice amount».
Under the IBC, the insolvency process against any corporate debtor is generally initiated only in clear cases where a real dispute between the parties as to the debt owed did not exist.
The dispute is related to the supply of goods for a government project implemented by Wipro, where it was awarded the work of design, manufacture, supply and installation of MV Panels.
Pursuant to that, Wipro had placed purchase orders for a total supply worth Rs 13.43 crore.
According to the appellant, it
