NCLT Kolkata Admits Planet Infrastructure Into CIRP, Rejects Guarantee Arbitration As Pre-Existing Dispute

The National Company Law Tribunal (NCLT), Kolkata on 10 August admitted Planet Infrastructure Management Private Limited into the Corporate Insolvency Resolution Process (CIRP) on a Section 9 petition filed by Ingram Micro India Private Limited.

A Bench comprising Judicial Member Labh Singh and Technical Member Rekha Kantilal Shah held that arbitration proceedings concerning the personal guarantees of the company's directors did not constitute a pre-existing dispute with the Corporate Debtor. It observed:

“The question arises what is dispute as referred in sub-clause (d) of clause (ii) of Sub-Section (5) of Section 9 and Section 8 of the IBC Code 2016. The provision of Section 5(6) IBC Code 2016 defines dispute which includes a suit or arbitration proceedings relating to (a) the existence of the amount of debt; (b)the quality of goods or service; or (c) the breach of a representation or warranty. Thus, the definition of dispute as defined in Section 5(6) of the IBC Code 2016 is an inclusive definition which includes dispute with regards to the existence of amount of debt, quality of goods and services and the breach of representation or warranty.”

Ingram Micro India had supplied IT hardware, software and other products to Planet Infrastructure and raised invoices aggregating to approximately Rs. 4.95 crore. It contended that despite repeated follow-ups and acknowledgements of liability by Planet Infrastructure, the outstanding amount remained unpaid. Planet Infrastructure had also issued a cheque for Rs. 4.95 crore, which was dishonoured with the endorsement that the account had been closed.

Planet Infrastructure opposed the petition, contending that the accounts between the parties were running accounts and subject to reconciliation and mutual adjustment. It also relied on arbitration proceedings initiated against its directors and personal guarantors to contend that a pre-existing dispute existed. It further disputed the inclusion of interest at 24% per annum and pointed to certain payments made after initiation of the proceedings.

The Tribunal noted that Planet Infrastructure had acknowledged the outstanding liability on multiple occasions. It found that even after accounting for subsequent payments and excluding the disputed interest component, the outstanding default continued to exceed the Rs. 1 crore threshold prescribed for initiating CIRP. It also took note of the repeated dishonour of cheques issued by Planet Infrastructure and observed that this reflected upon its financial position.

On the issue of pre-existing dispute, the Bench distinguished between the Corporate Debtor and its directors. It noted that the arbitration proceedings relied upon by Planet Infrastructure concerned a Deed of Guarantee and had been initiated against the personal guarantors. It observed:

“A perusal of order dated 30.03.2025 passed by Hon'ble High Court reveals that the dispute which has referred to Learned Arbitrator pertains to Deed of Guarantee. Thus, the dispute does not pertain to the Corporate Debtor.”

It therefore held that the arbitration proceedings concerning the Deed of Guarantee did not relate to Planet Infrastructure or the operational debt forming the subject matter of the Section 9 petition.

Accordingly, the NCLT admitted the Section 9 petition and initiated CIRP against Planet Infrastructure Management Private Limited.