# In the matter of Indiabulls Distribution Services Ltd. Vs. Xrbia Chakan Developers Pvt. Ltd.,Company Appeal(AT)(Ins)No. 1029 of 2021

> NCLAT judgment dated 2022-11-15. Citation: TCN-2022-NCLAT-00096. The case involves a batch of five appeals filed by Indiabulls Distribution Services Ltd.…

- **Court:** NCLAT
- **Order date:** 15 Nov 2022
- **Citation:** TCN-2022-NCLAT-00096
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/indiabulls-distribution-services-ltd-vs-xrbia-chakan-developers-pvt-ltdcompany-a-a110cfc8

## Summary

### Background

The case involves a batch of five appeals filed by Indiabulls Distribution Services Ltd. against various Xrbia developers (Chakan, Developers, Aobode, Warai). Indiabulls, acting as a consultant, entered into agreements with the Xrbia developers to market units in their projects and receive brokerage. Disputes arose regarding the payment of brokerage, leading Indiabulls to file applications under Section 9 of the Insolvency and Bankruptcy Code, 2016. The Adjudicating Authority dismissed the applications based on a pre-existing dispute evidenced by an email dated 01.03.2017.

## Facts

Indiabulls Distribution Services Ltd. entered into agreements with various Xrbia developers (Chakan Developers Pvt. Ltd., Xrbia Developers Ltd., Xrbia Aobode Developers Pvt. Ltd., Xrbia Warai Developers Pvt. Ltd.) to act as a consultant for marketing units in their projects. The agreements, dated 09.03.2016, stipulated that Indiabulls would receive brokerage for booking units. Indiabulls claimed that the Xrbia developers failed to pay the agreed-upon brokerage. Indiabulls served demand notices dated 19.02.2019 under Section 8 of the Insolvency and Bankruptcy Code, 2016. The Xrbia developers replied to the demand notices, except in the case of Xrbia Eiffel City II. Indiabulls filed applications under Section 9 of the IBC before the Adjudicating Authority, seeking to

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority's order dismissing the applications under Section 9 of the IBC …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016 allows an operational creditor to

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**Reasoning:** The NCLAT found that the Adjudicating Authority dismissed the applications based on a

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**Interpretation:** The existence of a 'dispute' under Section 9 of the IBC must be a genuine and

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**Application:** In this case, the NCLAT held that the email relied upon by the Adjudicating

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## Parties

- **Judges:** Rakesh Kuma…; Alok Sriv…
- **Appellants:** Indiabulls…
- **Respondents:** Xrbia Chakan…

## Timeline

- **2016-03-09 — Agreement…**: Agreements entered into between Indiabulls Distribution Services Ltd. and various Xrbia…
- **2017-03-01 — Email Indicatin…**: Email sent which the Adjudicating Authority considered as evidence of a pre-existing…

## 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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