# In the matter of Pleasant Valley Development Pvt. Ltd. Vs. Spain Hospitality Pvt. Ltd. CA(AT)(Insolvency) No. 799-2019

> NCLAT judgment dated 6 Aug 2019. Citation: TCN-2019-NCLAT-00375. The appellant filed an application under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLAT
- **Order date:** 6 Aug 2019
- **Citation:** TCN-2019-NCLAT-00375
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/pleasant-valley-development-pvt-ltd-vs-spain-hospitality-pvt-ltd-ca-1e64aa75

## Summary

### Background

The appellant filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, which was rejected by the Adjudicating Authority due to a 'pre-existence of dispute'. The appellant then filed an appeal against this rejection.

## Facts

Pleasant Valley Development Pvt. Ltd. (Appellant) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 (I&B Code) against M/s. Spain Hospitality Pvt. Ltd. (Corporate Debtor). The Adjudicating Authority, on June 14, 2019, rejected this application, citing a 'pre-existence of dispute' as the reason for dismissal. This rejection led to the current appeal before the National Company Law Appellate Tribunal (NCLAT).

…

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority correctly rejected the application under Section 9 of the I&B…

**Ratio:** If a 'pre-existing dispute' is established from the record, the Adjudicating Authority is…

**Reasoning:** The Adjudicating Authority is only required to ascertain whether a 'pre-existence of…

**Interpretation:** The court interpreted 'pre-existence of dispute' to mean that if the corporate…

**Application:** The corporate debtor's reply from August 28, 2017, which predated the demand…

## Parties

- **Judges:** S.J. Mukhop…; A.I.S. C…; +1 more
- **Advocates:** For the Appellant:…; For the Respondent…; +6 more

## Timeline

- **August 28, 2017 — Corporate Debto…**: M/s. Spain Hospitality Private Limited (Corporate Debtor) submitted a reply disputing the…
- **October 25, 2018 — Demand Notice…**: The Appellant issued a Demand Notice…

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclat-new-delhi/pleasant-valley-development-pvt-ltd-vs-spain-hospitality-pvt-ltd-ca-1e64aa75