# In the matter of Jignesh Pravindbhai Shah vs. HM Construction & Ors Company Appeal (AT) (Insolvency) No. 114 of 2023

> NCLAT judgment dated 2023-02-02. Citation: TCN-2023-NCLAT-00749. The case involves an appeal against the Adjudicating Authority's admission of a Section 9…

- **Court:** NCLAT
- **Order date:** 2 Feb 2023
- **Citation:** TCN-2023-NCLAT-00749
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/jignesh-pravindbhai-shah-vs-hm-construction-ors-company-appeal-7421934b

## Summary

### Background

The case involves an appeal against the Adjudicating Authority's admission of a Section 9 application. The appellant claims a pre-existing dispute before the issuance of a Section 8 notice and that letters were issued regarding this dispute. The Corporate Debtor allegedly did not deny receiving the letters, but the Adjudicating Authority disregarded them.

## Facts

The appellant, Jignesh Pravindbhai Shah, filed an appeal against the Adjudicating Authority's decision to admit a Section 9 application. The appellant contends that a pre-existing dispute existed before the issuance of the Section 8 notice. Letters were exchanged between the parties on January 27, 2021, and July 28, 2020, regarding the dispute. The appellant claims the Corporate Debtor did not deny receiving these letters, but the Adjudicating Authority disregarded them. To demonstrate bona fides, the appellant is willing to deposit Rs. 1,71,57,864/- within three weeks. The Impugned Order dated 27th January, 2023 shall remain stayed subject to deposit of aforesaid principal amount.

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in admitting the Section 9 application despite the …

**Ratio:** The existence of a pre-existing dispute, if proven, can be a valid ground to challenge

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**Reasoning:** The court considered the appellant's submission that a pre-existing dispute existed and

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**Interpretation:** Section 9 of the IBC allows operational creditors to initiate corporate

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**Application:** The appellant claimed a pre-existing dispute supported by letters. The court

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** Jignesh Pravindbha…
- **Respondents:** HM Construction &…

## Timeline

- **2020-07-28 — Letter I…**: Letter issued on 28th July, 2020…
- **2021-01-27 — Letter I…**: Letter issued on 27th January, 2021…

## 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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