# In the matter of Emgee Infrastructure Holdings (India) Pvt. Ltd. Vs. Navayuga Engineering Company Ltd. CA(AT)(Ins) No. 79 of 2020

> NCLAT judgment dated 2020-01-21. Citation: TCN-2020-NCLAT-00514. The case involves an appeal against the rejection of an application under Section 9 of the…

- **Court:** NCLAT
- **Order date:** 21 Jan 2020
- **Citation:** TCN-2020-NCLAT-00514
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/emgee-infrastructure-holdings-india-pvt-ltd-vs-navayuga-engineering-company-ltd-6a99309c

## Summary

### Background

The case involves an appeal against the rejection of an application under Section 9 of the Insolvency and Bankruptcy Code (IBC) by the Adjudicating Authority (National Company Law Tribunal), Amaravati Bench. The appellant, a sub-contractor of M/s. Navayuga Engineering Company Limited (the Corporate Debtor), filed the application for default of payment based on a demand notice issued under Section 8(1) of the IBC on June 16, 2018. The Corporate Debtor denied the payment, citing sub-standard work. The Adjudicating Authority rejected the application due to the pre-existence of a dispute.

## Facts

M/s. Emgee Infrastructure Holdings (India) Pvt. Ltd., a sub-contractor, is the Appellant and Operational Creditor. M/s. Navayuga Engineering Company Limited is the Corporate Debtor. The Appellant issued a demand notice under Section 8(1) of the Insolvency and Bankruptcy Code, 2016 on June 16, 2018, for default of payment. The Corporate Debtor denied the payment, claiming sub-standard work. The Adjudicating Authority (National Company Law Tribunal), Amaravati Bench, rejected the application under Section 9 of the I&B Code due to the pre-existence of a dispute, vide order dated December 3, 2019. The Appellant contended that there was no record of any dispute raised by the Corporate Debtor before the issuance of the demand notice. The Adjudicating Authority noted that

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## Issues and analysis

### Issue 1: Whether the application under Section 9 of the Insolvency and Bankruptcy Code, 2016 is barred by …

**Ratio:** The limitation period for filing an application under Section 9 of the IBC is three years

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**Reasoning:** The court reasoned that the default occurred on August 25, 2013, and the application was

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**Interpretation:** The court interpreted the limitation period strictly, emphasizing the need for

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**Application:** The court applied the limitation period to the specific facts of the case,

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## Parties

- **Judges:** S.J. Mukhop…; Bansi Lal…; +1 more
- **Appellants:** M/s. Emgee…
- **Respondents:** M/s. Navayuga…; M/s. Navayuga…

## Timeline

- **2013-08-25 — Completion…**: Work was completed on…
- **2016-12-01 — I&B Code E…**: The Insolvency and…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8(1) — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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