This case involves an appeal against an order passed by the Adjudicating Authority (National Company Law Tribunal, Chandigarh) in CP(IB) No. 168/Chd/CHD/2018, which admitted an application filed by Respondent No. 2 under Section 9 of the Insolvency and Bankruptcy Code (IBC) against Respondent No. 1. The appeal contests the admission of the application, primarily arguing that the retention money claimed does not fall under the definition of operational debt, the claim is time-barred, and there was a pre-existing dispute.
The Operational Creditor (Respondent No. 2, CTC Projects Private Limited) was awarded a work order on 2011-11-19 by the Corporate Debtor (Respondent No. 1, Hind Inn and Hotels Ltd.) for civil construction. The work order stipulated a retention money clause, where 5% of each running bill would be retained and released after the Defects Liability Period of one year from the completion certificate date. The Corporate Debtor issued a virtual completion certificate on 2014-04-04, with the Defects Liability Period running from 2014-03-31 to 2015-04-01. After the Defects Liability Period, the Operational Creditor requested the release of the retention money on 2015-04-10. The Corporate Debtor, however, raised concerns about water accumulation via email on 2015-07-13, which
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The Operational Creditor (CTC Projects Private…
The Corporate Debtor issued a virtual…
This case involves an appeal against an order passed by the Adjudicating Authority (National Company Law Tribunal, Chandigarh) in CP(IB) No. 168/Chd/CHD/2018, which admitted an application filed by Respondent No. 2 under Section 9 of the Insolvency and Bankruptcy Code (IBC) against Respondent No. 1. The appeal contests the admission of the application, primarily arguing that the retention money claimed does not fall under the definition of operational debt, the claim is time-barred, and there was a pre-existing dispute.
The Operational Creditor (Respondent No. 2, CTC Projects Private Limited) was awarded a work order on 2011-11-19 by the Corporate Debtor (Respondent No. 1, Hind Inn and Hotels Ltd.) for civil construction. The work order stipulated a retention money clause, where 5% of each running bill would be retained and released after the Defects Liability Period of one year from the completion certificate date. The Corporate Debtor issued a virtual completion certificate on 2014-04-04, with the Defects Liability Period running from 2014-03-31 to 2015-04-01. After the Defects Liability Period, the Operational Creditor requested the release of the retention money on 2015-04-10. The Corporate Debtor, however, raised concerns about water accumulation via email on 2015-07-13, which
…The Operational Creditor (CTC Projects Private…
The Corporate Debtor issued a virtual…