# In the matter of Navkar Urbanstructure Ltd. Vs.
Niyojit Infratech Pvt. Ltd Company Appeal (AT) (Insolvency) No. 800 of 2022

> NCLAT judgment dated 2022-08-22. Citation: TCN-2022-NCLAT-00278. This is a Company Appeal (AT) (Insolvency) No. 800 of 2022. The Appellant, an Operational…

- **Court:** NCLAT
- **Order date:** 22 Aug 2022
- **Citation:** TCN-2022-NCLAT-00278
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/navkar-urbanstructure-ltd-vs-niyojit-infratech-pvt-ltd-company-appeal-bfcd1531

## Summary

### Background

This is a Company Appeal (AT) (Insolvency) No. 800 of 2022. The Appellant, an Operational Creditor, filed an appeal against the order dated 28.04.2022 passed by the Adjudicating Authority, which rejected the Appellant's application filed under Section 9 of the Insolvency and Bankruptcy Code (IBC). The Corporate Debtor received a work order and assigned part of the work to the Appellant. A notice was issued by the Appellant to the Corporate Debtor demanding payment for services provided. The Corporate Debtor invoked the Arbitration Clause under the agreement. The Appellant's claim was denied by the Corporate Debtor, stating that no money could be claimed without obtaining a Completion Certificate. The Adjudicating Authority dismissed the Section 9 application, noting

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## Facts

The Appellant, an Operational Creditor, filed an appeal against the Adjudicating Authority's order dated 28.04.2022, which rejected their Section 9 application. The Corporate Debtor received a work order and assigned part of it to the Appellant. The Appellant issued a notice dated 12.01.2021 under Section 8 of the IBC, demanding payment. The Corporate Debtor invoked the Arbitration Clause via notice dated 22.01.2021. The Corporate Debtor denied the Appellant's claim, stating that no money could be claimed without a Completion Certificate. The Adjudicating Authority dismissed the Section 9 application, noting the invoked Arbitration Clause. The Appellant argued they couldn't file a rejoinder and that the arbitration notice was received after the Section 8 notice. The

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority was correct in dismissing the Section 9 application based on the …

**Ratio:** The existence of a pre-existing dispute and the presence of an Arbitration Clause are

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**Reasoning:** The Adjudicating Authority rightly took the view that in light of the pre-existing

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

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**Application:** In this case, the Corporate Debtor invoked the Arbitration Clause, indicating a

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## Parties

- **Judges:** Ashok Bh…; M. Satyanarayana…; +1 more
- **Appellants:** Navkar Urbanstruct…
- **Respondents:** Niyojit Infratech…

## Timeline

- **2022-08-22 — Hearing of th…**: Learned Counsel for the…
- **2022-04-28 — Order by Adjudicating…**: The Adjudicating Authority passed an order…

## 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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