# In the matter of Pravin Electricals Private Ltd. vs. Akshaya Engineering Works Private Ltd.

> NCLAT judgment dated 2025-07-30. Citation: TCN-2025-NCLAT-00472. The appeal arises from an order by the Adjudicating Authority (NCLT, Mumbai Bench) admitting…

- **Court:** NCLAT
- **Order date:** 30 Jul 2025
- **Citation:** TCN-2025-NCLAT-00472
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/pravin-electricals-private-ltd-vs-akshaya-engineering-works-private-ltd-534ef63c

## Summary

### Background

The appeal arises from an order by the Adjudicating Authority (NCLT, Mumbai Bench) admitting a Section 9 application filed by Akshaya Engineering Works Private Ltd. (Operational Creditor) against Pravin Electricals Private Ltd. (Corporate Debtor), initiating CIRP.

## Facts

Pravin Electricals Private Ltd. was awarded two contracts by MSEDCL in 2018.

Pravin Electricals sub-contracted work to Akshaya Engineering Works Private Ltd.

Akshaya Engineering raised 17 invoices against Pravin Electricals.

Pravin Electricals made partial payments against the invoices.

Akshaya Engineering sent a demand notice under Section 8 of IBC.

Pravin Electricals replied to the demand notice, citing pending reconciliation with MSEDCL.

Akshaya Engineering filed a Section 9 application.

The Adjudicating Authority admitted the Section 9 application.

Pravin Electricals filed an appeal against the order.

MSEDCL issued notices to correct and show cause notices to Pravin Electricals for delays.

MSEDCL partially terminated the contract with Pravin Electricals.

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## Issues and analysis

### Issue 1: Whether there was a pre-existing dispute regarding …

**Ratio:** The existence of a pre-existing dispute is a valid ground for rejecting a Section 9

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**Reasoning:** The NCLAT found that there was sufficient evidence of pre-existing disputes between the

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**Interpretation:** The term 'pre-existing dispute' should be interpreted broadly to include any

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**Application:** In this case, the NCLAT held that the communications between the parties and

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** Rechel Philip…
- **Respondents:** Pravin Electricals…; Akshaya Engineerin…
- **Other parties:** Maharashtra State…
- **Advocates:** Gaurav…; Poorva…; +8 more

## Timeline

- **2023-10-17 — Impugned…**: Order passed by the Adjudicating Authority…
- **2025-07-30 — Judgment…**: Date of the NCLAT…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61 — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

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