# In the matter of Mr. Gajendra Parihar Vs. Devi Industrial Engineers and Anr. CA(AT)(Ins) No. 1370 of 2019

> NCLAT judgment dated 2020-03-18. Citation: TCN-2020-NCLAT-00286. The appeal was filed by Chandralekha Constructions Pvt. Ltd. (Corporate Debtor) under Section…

- **Court:** NCLAT
- **Order date:** 18 Mar 2020
- **Citation:** TCN-2020-NCLAT-00286
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/mr-gajendra-parihar-vs-devi-industrial-engineers-and-anr-ca-59e7a961

## Summary

### Background

The appeal was filed by Chandralekha Constructions Pvt. Ltd. (Corporate Debtor) under Section 61 of the Insolvency and Bankruptcy Code, 2016, against the order of the National Company Law Tribunal (NCLT) dated 08.11.2019. The NCLT had admitted an application filed by Devi Industrial Engineers (Operational Creditor) under Section 9 of the IBC for initiating Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor. The appeal challenges the NCLT's decision to admit the application and initiate CIRP.

## Facts

Chandralekha Constructions Pvt. Ltd. (Corporate Debtor) engaged Devi Industrial Engineers (Operational Creditor) for the deployment of a boom pump under a work order dated 09.09.2017. The Corporate Debtor alleged that the services provided by the Operational Creditor were deficient and defective, leading to frequent breakdowns and loss of work hours. The Corporate Debtor raised disputes regarding the invoices raised by the Operational Creditor, citing deficiency of service. The Operational Creditor approached the Construction Equipment Rental Forum (CERA) for conciliation and mediation. The Operational Creditor issued a demand notice under Section 8 of the IBC, claiming an outstanding amount. The Corporate Debtor claimed that the invoices forming the basis of the

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## Issues and analysis

### Issue 1: Whether there was a pre-existing dispute between the Corporate Debtor and the Operational Creditor …

**Ratio:** The existence of a pre-existing dispute is a bar to the admission of an application under

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**Reasoning:** The NCLAT considered the exchange of emails and communications between the parties, which

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**Interpretation:** The term 'dispute' under Section 8(2)(a) of the IBC is interpreted broadly to

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**Application:** In this case, the NCLAT found that the Corporate Debtor had raised concerns

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## Parties

- **Judges:** A.B. S…; A.I.S. C…; +1 more
- **Appellants:** Gajendra P…
- **Respondents:** Chandralekha…; M/s Devi Industria…

## Timeline

- **2017-09-09 — Work Ord…**: Corporate Debtor placed a work order for…
- **2017-10-31 — Dispute R…**: Corporate Debtor sent email…

## 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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