# In the matter of Mr. Arun Mittal
Vs. Sun Control Systems & Anr. Company Appeal (AT) (Insolvency) No. 298 of 2022

> NCLAT judgment dated 2022-09-20. Citation: TCN-2022-NCLAT-00200. The appeal was filed under Section 61 of the IBC Code, 2016, against an order dated…

- **Court:** NCLAT
- **Order date:** 20 Sept 2022
- **Citation:** TCN-2022-NCLAT-00200
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/mr-arun-mittal-vs-sun-control-systems-anr-company-appeal-5b1f00bb

## Summary

### Background

The appeal was filed under Section 61 of the IBC Code, 2016, against an order dated 28.02.2022 passed by the Adjudicating Authority (National Company Law Tribunal, New Delhi, Bench-VI) in C.P.(IB) No. 2185(ND)/2019. The Adjudicating Authority admitted a Section 9 application under the IBC filed by the Operational Creditor and initiated the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor. The Corporate Debtor, Aarcity Infrastructure Pvt. Ltd., issued work orders to Sun Control Systems for the supply and installation of UPVC doors and windows. Disputes arose regarding the completion of the work and payments. The Operational Creditor filed an application under Section 9 of the IBC seeking to initiate CIRP against the Corporate Debtor.

## Facts

Aarcity Infrastructure Pvt. Ltd. (Corporate Debtor/Appellant) issued three work orders to Sun Control Systems (Operational Creditor/Respondent No. 1) for the supply and installation of UPVC doors and windows in the Regency Park Project. The first work order was issued on 10.06.2016, followed by subsequent work orders on 05.05.2017 and 16.08.2017 for additional work. The payment terms included an advance, payments after delivery and installation, and retention amounts. Sun Control Systems claimed that invoices were raised for Rs. 1,18,61,078/-, while Aarcity Infrastructure claimed to have paid Rs. 92,62,856/-. Disputes arose regarding the completion of the installation work and the amounts due. Sun Control Systems issued a Statutory Demand Notice under Section 8 of the

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority was correct in admitting the Section 9 application under the IBC …

**Ratio:** The Hon'ble Supreme Court in Mobilox Innovations Pvt. Ltd. Vs. Kirusa Software Private

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**Reasoning:** The NCLAT found that the Corporate Debtor had defaulted in the payment of an operational

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**Interpretation:** The court interpreted Section 9 of the IBC and the principles laid down by the

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**Application:** The court applied the principles laid down in Mobilox Innovations Pvt. Ltd. Vs.

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## Parties

- **Judges:** Ashok Bh…; M. Satyanarayana…; +1 more
- **Appellants:** Arun Mi…
- **Respondents:** Aarcity Infrastruc…; Sun Control…

## Timeline

- **2016-06-10 — Work Order…**: Aarcity Infrastructure Pvt. Ltd. issued a work order to Sun Control Systems for the…
- **2017-05-05 — Work Order…**: Aarcity Infrastructure Pvt. Ltd. issued another work order to Sun Control Systems for the…

## 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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