# In the matter of Kashyap lnfraprojects Pvt. Ltd. vs. Hi-Tech Sweet Water Technologies Pvt. Ltd.

> NCLAT judgment dated 2024-11-27. Citation: TCN-2024-NCLAT-00059. The appeal arises from an order dated 02.11.2022 passed by the Adjudicating Authority…

- **Court:** NCLAT
- **Order date:** 27 Nov 2024
- **Citation:** TCN-2024-NCLAT-00059
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/kashyap-lnfraprojects-pvt-ltd-vs-hi-tech-sweet-water-technologies-pvt-ltd-ffc67b3f

## Summary

### Background

The appeal arises from an order dated 02.11.2022 passed by the Adjudicating Authority (National Company Law Tribunal, Ahmedabad, Bench-I) in CP (IB) No. 349 of 2020. The Adjudicating Authority rejected the Section 9 application of the Operational Creditor, Kashyap Infraprojects Pvt. Ltd., holding it as not maintainable due to pre-existing disputes with the Corporate Debtor, Hi-Tech Sweet Water Technologies Pvt. Ltd. The Operational Creditor, being aggrieved by the impugned order, preferred the present appeal.

## Facts

M/s. Kashyap Infraprojects Pvt. Ltd. (Operational Creditor) supplied goods and services (pump-sets and related accessories) to M/s. Hi-Tech Sweet Water Technologies Pvt. Ltd. (Corporate Debtor) under a contract related to a project for the Government of Bihar. The Corporate Debtor allegedly failed to make payments for the supplied goods. The Operational Creditor issued a demand notice under Section 8 of the IBC on 01.09.2020. The Corporate Debtor responded with a notice of dispute on 18.09.2020, citing delayed and defective supply of goods. The Operational Creditor filed a Section 9 application, which was dismissed by the Adjudicating Authority on 02.11.2022 due to pre-existing disputes. The Corporate Debtor claimed that the pump-sets were not installed within the

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## Issues and analysis

### Issue 1: Whether there is any infirmity in the impugned order passed by the Adjudicating Authority …

**Ratio:** The existence of a pre-existing dispute, as defined under the IBC, bars the initiation of

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**Reasoning:** The court found that the emails exchanged between the parties prior to the demand notice

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**Interpretation:** The existence of a dispute must be genuine and not a mere attempt to evade

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**Application:** In this case, the court found that the emails exchanged between the parties

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## Parties

- **Judges:** Rakesh Kuma…; Barun M…; +1 more
- **Appellants:** M/s. Kashyap…
- **Respondents:** M/s. Hi-Tech…

## Timeline

- **2020-01-07 — Email from Corporate Debtor to Operational…**: The Corporate Debtor sent an email to the Operational Creditor highlighting issues with…
- **2020-09-01 — Demand Notice…**: The Operational Creditor issued a demand notice under Section 8 of the IBC to the…

## 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)

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