# In the matter of Drilltech Engineers Pvt. Ltd. vs. DLF Limited

> NCLAT judgment dated 2025-05-01. Citation: TCN-2025-NCLAT-00066. The case involves an appeal against an order dated January 10, 2025, passed by the National…

- **Court:** NCLAT
- **Order date:** 1 May 2025
- **Citation:** TCN-2025-NCLAT-00066
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/drilltech-engineers-pvt-ltd-vs-dlf-limited-4ca339aa

## Summary

### Background

The case involves an appeal against an order dated January 10, 2025, passed by the National Company Law Tribunal (NCLT), Chandigarh Bench, which dismissed a Section 9 application under the Insolvency and Bankruptcy Code (IBC). The application was dismissed on the grounds that a pre-existing dispute existed between the Operational Creditor (Drilltech Engineers Pvt. Ltd.) and the Corporate Debtor (DLF Limited). The NCLT accepted the Corporate Debtor's defense that there were concerns regarding the quality of work performed by the Operational Creditor, leading to the conclusion that no operational debt was due and payable.

## Facts

DLF Limited issued a tender for piling works at its commercial project in Goa on 08.10.2021. Drilltech Engineers Pvt. Ltd. submitted a bid and was declared the successful bidder. A Letter of Intent (LOI) was issued on 18.11.2021 for 335 piles. Drilltech mobilized plant and machinery to the site on 30.11.2021 and 06.12.2021. A formal agreement was signed on 25.11.2021. An amendment was issued on 05.03.2022 for 100 additional piles. The entire scope of work (335 + 100 piles) was completed by 26.05.2022. DLF offered an additional 16 piles on 03.06.2022 and 06.06.2022, but Drilltech declined due to payment defaults. Drilltech sent a notice under Section 8 of IBC on 02.07.2022, which DLF replied to on 12.07.2022, alleging frivolous claims. Drilltech filed a Section 9

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## Issues and analysis

### Issue 1: Whether a pre-existing dispute existed between the Operational Creditor and the Corporate Debtor …

**Ratio:** The legal principle is that under Section 9(5)(ii)(d) of the IBC, the Adjudicating

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**Reasoning:** The court reasoned that the communications exchanged between the parties, particularly

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**Interpretation:** The interpretation of 'pre-existing dispute' is crucial. It means that the

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**Application:** In this case, the court applied the ratio to the facts by examining the

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## Parties

- **Judges:** Ashok Bh…; Barun M…; +1 more
- **Appellants:** M/s Drilltech…
- **Respondents:** DLF Lim…; M/s DLF L…
- **Advocates:** P. Na…; Rishabh…; +4 more

## Timeline

- **2021-10-08 — Tender I…**: DLF Limited issued a tender for piling…
- **2021-11-18 — Letter of Inte…**: A Letter of Intent (LOI) was issued to…

## 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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