# In the matter of Jain Irrigation Systems Ltd. vs. Pragyawan Technologies Pvt. Ltd. Company Appeal (AT) (Insolvency) No. 311 of 2023

> NCLAT judgment dated 2023-03-21. Citation: TCN-2023-NCLAT-00663. The case involves an appeal against an order dated 25th January 2023, where the Adjudicating…

- **Court:** NCLAT
- **Order date:** 21 Mar 2023
- **Citation:** TCN-2023-NCLAT-00663
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/jain-irrigation-systems-ltd-vs-pragyawan-technologies-pvt-ltd-company-appeal-d28504a1

## Summary

### Background

The case involves an appeal against an order dated 25th January 2023, where the Adjudicating Authority dismissed a Section 9 application filed by Jain Irrigation Systems Ltd. based on the existence of a pre-existing dispute. Prior to the Section 8 notice dated 27.12.2019, the corporate debtor had already sent a notice dated 21.11.2019 raising issues regarding the supplies made by the appellant. The appellant issued a notice under Section 8 of the I&B Code, 2016, reminding payment of the amount and the purchase order. The corporate debtor submitted a reply to the notice.

## Facts

Jain Irrigation Systems Ltd. (Appellant) supplied PLB HDPE Duct to Pragyawan Technologies Pvt. Ltd. (Respondent/Corporate Debtor) based on purchase orders issued on 10.06.2019. The Appellant issued two Performa Invoices. A letter/notice was issued on 21.11.2019 and 22.11.2019 to the Appellant. Subsequently, on 27.12.2019, the Appellant issued a notice under Section 8 of the I&B Code, 2016, demanding payment. The Corporate Debtor replied, claiming a pre-existing dispute and also issued a notice of dispute against the Appellant's notice under Section 8 dated 27.12.2019, referencing a notice dated 21.11.2019. The Corporate Debtor also filed a civil suit. The Adjudicating Authority dismissed the Section 9 application filed by the Appellant due to the pre-existing

…

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority was correct in dismissing the Section 9 application filed by the …

**Ratio:** Section 9 of the I&B Code, 2016, allows for the initiation of corporate insolvency

…

**Reasoning:** The court reasoned that the record showed a pre-existing dispute between the parties, as

…

**Interpretation:** The interpretation of Section 9 of the I&B Code is that it provides a

…

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

…

## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** Jain Irrigation…
- **Respondents:** Pragyawan…
- **Advocates:** Alok…; Varsha Ba…; +2 more

## Timeline

- **2019-06-10 — Purchase Order…**: Purchase orders were issued to the…
- **2019-11-21 — Letter/Notice…**: A letter/notice was…

## 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)

---

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/jain-irrigation-systems-ltd-vs-pragyawan-technologies-pvt-ltd-company-appeal-d28504a1