# In the matter of Harish Amilineni Vs. Rajkumar Brothers and Production Pvt. Ltd. & Anr. CA(AT)(Ins)No. 212 of 2020

> NCLAT judgment dated 2020-08-10. Citation: TCN-2020-NCLAT-00177. The case involves an appeal against the admission of an application under Section 9 of the…

- **Court:** NCLAT
- **Order date:** 10 Aug 2020
- **Citation:** TCN-2020-NCLAT-00177
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/harish-amilineni-vs-rajkumar-brothers-and-production-pvt-ltd-anr-ca-950a4b5c

## Summary

### Background

The case involves an appeal against the admission of an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) by an Operational Creditor against Amilionn Technologies Private Limited (Corporate Debtor). The Operational Creditor claimed default in payment of Rs. 2,30,62,247.90 for goods and services provided from July 2016 to November 2016, based on a Master Services Agreement. The Corporate Debtor allegedly avoided entering into a formal agreement despite issuing work orders. The Adjudicating Authority (NCLT Hyderabad) admitted the application, leading to the appeal by Harish Amilineni, a shareholder of the Corporate Debtor, citing deficiencies in service and lack of opportunity to defend the action.

## Facts

M/s Rajkumar Brothers and Production Pvt. Ltd. (Operational Creditor) claimed that M/s Amilionn Technologies Private Limited (Corporate Debtor) defaulted on a payment of Rs. 2,30,62,247.90. The Operational Creditor provided goods and services to the Corporate Debtor between July 2016 and the first week of November 2016, based on a Master Services Agreement. The Operational Creditor claimed that the Corporate Debtor issued work orders but avoided entering into a formal agreement. The Operational Creditor claimed to have completed approximately 90% of the work at Ramgarh and Khunti sites and 65-70% at other locations by September 30, 2016. The Corporate Debtor allegedly never raised issues of deficiency of work and material. The Corporate Debtor sent an e-mail on

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in admitting the application under Section 9 of the IBC …

**Ratio:** The existence of a pre-existing dispute is a bar to the admission of an application under

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**Reasoning:** The NCLAT reasoned that the Adjudicating Authority did not adequately consider the e-mail

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**Interpretation:** Section 9 of the IBC requires the Adjudicating Authority to determine whether

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**Application:** In this case, the NCLAT found that the e-mail communications between the

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## Parties

- **Judges:** A.I.S. C…; Anant Bijay…; +1 more
- **Appellants:** Harish Ami…
- **Respondents:** Amilionn Technolog…; Rajkumar Brothers…

## Timeline

- **2016-07-01 — Start of Goods and…**: Operational Creditor started providing goods…
- **2016-11-01 — End of Goods and…**: Operational Creditor stopped providing goods and services to the Corporate Debtor (first…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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