# In the matter of Valmar Projects LLP vs. Isthara Parks Private Limited

> HC judgment dated 2024-06-27. Citation: TCN-2024-HC-00067. The case involves arbitration applications filed under Section 11(6) of the Arbitration and…

- **Court:** HC
- **Order date:** 27 Jun 2024
- **Citation:** TCN-2024-HC-00067
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-new-delhi/valmar-projects-llp-vs-isthara-parks-private-limited-ecf37637

## Summary

### Background

The case involves arbitration applications filed under Section 11(6) of the Arbitration and Conciliation Act, 1996, seeking the appointment of an arbitrator to adjudicate disputes between the parties. The disputes arose from a Facilities Service Agreement dated 23.02.2022 and a Catering Service Agreement dated 16.03.2022. The respondent issued a notice under Section 8 of the Insolvency and Bankruptcy Code, 2016, which was responded to by the applicant. Subsequently, the respondent filed a petition under Section 9 of the IBC before the NCLT, Hyderabad. The applicant then issued a notice under the 1996 Act.

## Facts

The parties entered into a Facilities Service Agreement on 23.02.2022 and a Catering Service Agreement on 16.03.2022. Under the Catering Service Agreement, the respondent was required to supply food to the inmates of the hostel students of the applicant. Under the Facility Service Agreement, the respondent was under an obligation to provide housekeeping services to the inmates of the hostel. Disputes arose between the parties, leading to the termination of the Agreements on 23.05.2023. The respondent issued a notice under Section 8 of the Insolvency and Bankruptcy Code, 2016 on 05.08.2023, which was responded to by the applicant on 15.08.2023. The respondent then filed a petition under Section 9 of the IBC on 04.09.2023 before the NCLT, Hyderabad. The NCLT directed

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## Issues and analysis

### Issue 1: Whether the pending proceeding under Section 9 of IBC before the NCLT bars the initiation of …

**Ratio:** Mere filing of an application under Section 7 of IBC, which is yet to be admitted, cannot

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**Reasoning:** The court relied on the Supreme Court's decision in Indus Biotech Private Limited vs.

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**Interpretation:** The court interpreted that the pendency of a Section 9 IBC petition, which is a

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**Application:** In this case, the respondent initiated a proceeding under Section 9 of the IBC

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## Parties

- **Judges:** ALOK AR…
- **Appellants:** Sai Sanjay…
- **Respondents:** P.Bhaskara…
- **Other parties:** Kohi…

## Timeline

- **2022-02-23 — Facilities Service…**: Parties entered into a…
- **2022-03-16 — Catering Service…**: Parties entered into a…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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