# In the matter of Attluru Sreenivasulu Reddy, Suspended Director of KLSR Infratech Ltd. vs. AS Met Corp Pvt. Ltd. & Anr.

> NCLAT judgment dated 2026-03-23. Citation: TCN-2026-NCLAT-00062. The case involves a Transfer Appeal (AT) filed against an order passed by the National…

- **Court:** NCLAT
- **Order date:** 23 Mar 2026
- **Citation:** TCN-2026-NCLAT-00062
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/attluru-sreenivasulu-reddy-suspended-director-of-klsr-infratech-ltd-vs-as-met-co-871c9684

## Summary

### Background

The case involves a Transfer Appeal (AT) filed against an order passed by the National Company Law Tribunal (NCLT), Hyderabad, which admitted a Section 9 application filed by AS Met Corp Pvt Ltd (Operational Creditor) against KLSR Infratech Ltd (Corporate Debtor). The appellant, Attluru Sreenivasulu Reddy, is the Suspended Director of KLSR Infratech Ltd.

## Facts

KLSR Infratech Ltd. (Corporate Debtor) is engaged in contracting work related to rural water supply for over 25 years.

AS Met Corp Pvt. Ltd. (Operational Creditor) had been supplying goods to KLSR Infratech Ltd. since 2019.

The practice between the OC and the CD was to make payment against goods supplied by issuing Letter of Credit.

In December 2021, the CD noticed a huge outstanding of about Rs.16,86,80,746/- being shown as receivables and decided to stop procurement of raw materials.

The OC sent a Demand Notice on 31.05.2022 claiming Rs.3,79,06,143/-.

The CD replied to the Demand Notice on 15.06.2022, disputing the claim and alleging fictitious invoices and fraud.

The CD filed an FIR against the OC and other suppliers, alleging cheating and forgery.

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## Issues and analysis

### Issue 1: Whether reply dated 15.06.2022 issued by Corporate Debtor in response to demand notice dated …

**Ratio:** Section 9(5)(ii)(d) of the IBC mandates rejection of a Section 9 application if a notice

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**Reasoning:** The CD sent a reply dated 15.06.2022 after receiving the demand notice, indicating a

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**Interpretation:** A valid notice of dispute, as per Section 9(5) of the IBC, must be considered

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**Application:** The tribunal held that the reply dated 15.06.2022 was indeed a notice of

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** Attluru Sreenivasu…; Saurabh A…
- **Respondents:** KLSR Infratech…; AS Met Corp Pvt…
- **Other parties:** Allu Na…
- **Advocates:** Arun Kath…; Honey S…; +12 more

## Timeline

- **14.07.2023 — Order by NCLT…**: NCLT Hyderabad admitted Section 9 application filed by AS Met Corp Pvt Ltd against KLSR…
- **14.11.2025 — Supreme Cour…**: Hon'ble Supreme Court passed an order in Writ Petition (Criminal) No.440/2025 in M/s A.S.…

## 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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