NCLAT Upholds NCLT Decision in Eastman Auto & Power Insolvency Case

The NCLAT dismissed an appeal against Eastman Auto & Power in an insolvency case, citing a pre-existing dispute with Vave India Energy Solutions. The operational creditor's claim of Rs 1.02 crore was rejected, as the NCLT found a genuine dispute existed before the notice under the Insolvency & Bankruptcy Code.

The National Company Law Appellate Tribunal (NCLAT) reaffirmed an earlier decision by the National Company Law Tribunal (NCLT) in a case involving Eastman Auto & Power. The appeal was lodged by Vave India Energy Solutions over a financial dispute.

The appeal centered on a claimed default of Rs 1.02 crore by Eastman Auto & Power, related to an agreement for the supply of inverter batteries. A notice was served under Section 8 of the Insolvency & Bankruptcy Code, but the NCLT found that a pre-existing dispute existed before this notice.

The tribunal stated that the mere existence of a dispute is enough to dismiss the application without delving into detailed merits. Vave India Energy Solutions had previously challenged these findings, but the appellate tribunal dismissed the appeal, maintaining that there were no grounds to overturn the initial ruling.

(With inputs from agencies.)