# In the matter of K.K. Capital Services Limited Vs. Sristi Hospitality Private Limited CA(AT)(Ins)No. 320 of 2019

> NCLAT judgment dated 2020-06-12. Citation: TCN-2020-NCLAT-00225. K.K Capital Services Limited, the Appellant, filed an application under Section 9 of the…

- **Court:** NCLAT
- **Order date:** 12 Jun 2020
- **Citation:** TCN-2020-NCLAT-00225
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/kk-capital-services-limited-vs-sristi-hospitality-private-limited-ca-0148f023

## Summary

### Background

K.K Capital Services Limited, the Appellant, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 against Sristi Hospitality Private Limited, the Corporate Debtor, for an operational debt. The Adjudicating Authority (National Company Law Tribunal) Mumbai Bench rejected the application, stating that the Appellant's claim fell within the ambit of a disputed claim. The Appellant is in the business of Financial Advisor and Legal Consultancy Services. The Corporate Debtor had a running loan account with JMFARC but was under financial stress due to high interest. The Corporate Debtor approached the Appellant to find another bank or NBFC to take over the loan. A mandate/agreement was signed between the Appellant and Corporate Debtor on 2016-03-09,

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## Facts

K.K Capital Services Limited (Appellant) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) against Sristi Hospitality Private Limited (Corporate Debtor) for an operational debt. The Adjudicating Authority rejected the application, stating the claim fell under a disputed claim. The Appellant is a Financial Advisor and Legal Consultancy Services provider. The Corporate Debtor had a loan account with JMFARC but faced financial stress due to high interest. The Corporate Debtor asked the Appellant to find another bank/NBFC. A mandate agreement was signed on 2016-03-09, stating Rs. 57.5 Lakhs would be paid to the Appellant upon successful loan sanction. The Appellant secured loan approval from Indiabulls, which was 10% cheaper. The

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## Issues and analysis

### Issue 1: Whether there is a pre-existing dispute between the Appellant and the Corporate Debtor before the …

**Ratio:** The ratio is based on the Supreme Court's rulings in cases like Mobilox Innovative Pvt.

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**Reasoning:** The Tribunal examined the disputes raised by the Corporate Debtor, including issues

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**Interpretation:** The interpretation is that a 'dispute' under the I&B Code must be a genuine

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**Application:** In this case, the Tribunal applied the ratio by examining the specific disputes

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## Parties

- **Judges:** Jarat Kuma…
- **Appellants:** K.K Capital…
- **Respondents:** Sristi Hospitality…
- **Advocates:** Gautam…; Piyush Bh…

## Timeline

- **2016-03-09 — Mandate/Agreeme…**: A mandate/agreement was signed between the Appellant and Corporate Debtor, stating that…
- **2016-04-30 — Invoice R…**: The Appellant raised an invoice and demanded…

## 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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