# In the matter of Continental Piling & Excavation Pvt. Ltd.
Vs.
Capacit’e Infraprojects Limited Company Appeal (AT) (Ins.) No. 726 of 2019
&
I.A. No.1975 of 2021

> NCLAT judgment dated 2022-07-14. Citation: TCN-2022-NCLAT-00365. Continental Piling & Excavation Pvt. Ltd. filed an appeal under Section 61 of the Insolvency…

- **Court:** NCLAT
- **Order date:** 14 Jul 2022
- **Citation:** TCN-2022-NCLAT-00365
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/continental-piling-excavation-pvt-ltd-vs-capacite-infraprojects-limited-company-12e7e524

## Summary

### Background

Continental Piling & Excavation Pvt. Ltd. filed an appeal under Section 61 of the Insolvency and Bankruptcy Code, 2016 (IBC) against an order dated 14.12.2018 passed by the National Company Law Tribunal, Mumbai. The NCLT had dismissed an application filed by Continental Piling & Excavation Pvt. Ltd. under section 9 of the IBC, citing the existence of a dispute between the Operational Creditor and Corporate Debtor before the demand notice was served under section 8.

## Facts

Continental Piling & Excavation Pvt. Ltd. (Operational Creditor/Appellant) received two work orders from Capacit'e Infraprojects Limited (Corporate Debtor/Respondent) on 17.8.2013 and 22.10.2013 for piling and foundation work. After completing the work, the Appellant raised invoices, and some payments were made. The Appellant claimed to have submitted necessary documents like Provident Fund challans and ESI challans. However, the Respondent requested account statements and compliance documents. As Rs.38,34,843.53 remained due, the Appellant sent a section 8 demand notice on 16.8.2017, which the Respondent replied to on 25.8.2017, citing non-compliance with labor laws. The Operational Creditor claimed that the requirements of labour compliances are not relevant for

…

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in rejecting the Section 9 application based on the …

**Ratio:** The Hon'ble Supreme Court in Mobilox Innovations Private Limited vs. Kirusa Software

…

**Reasoning:** The court found that the corporate debtor had repeatedly pointed out the

…

**Interpretation:** The existence of a 'dispute' as defined under the IBC, prior to the issuance of

…

**Application:** In this case, the court found that the dispute regarding compliance with labor

…

## Parties

- **Judges:** Rakesh Kuma…; Alok Sriv…; +1 more
- **Appellants:** Continental…
- **Respondents:** Capacit'e…

## Timeline

- **2013-08-17 — Work Ord…**: Corporate Debtor issued first work…
- **2013-10-22 — Work Ord…**: Corporate Debtor issued second work…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61 — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclat-new-delhi/continental-piling-excavation-pvt-ltd-vs-capacite-infraprojects-limited-company-12e7e524