# In the matter of Rajasthan Drugs and Pharmaceuticals
Vs.
ATE Project Pvt. Ltd. & Ors Company Appeal (AT) (Ins) No. 1003 of 2021

> NCLAT judgment dated 2022-08-22. Citation: TCN-2022-NCLAT-00275. The appeal was directed against an order dated 11.11.2021 passed by the Adjudicating…

- **Court:** NCLAT
- **Order date:** 22 Aug 2022
- **Citation:** TCN-2022-NCLAT-00275
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/rajasthan-drugs-and-pharmaceuticals-vs-ate-project-pvt-ltd-ors-company-appeal-d3991774

## Summary

### Background

The appeal was directed against an order dated 11.11.2021 passed by the Adjudicating Authority (National Company Law Tribunal, Jaipur Bench) in CA (IB) No.324/9/JPR/2019, which admitted an application filed by the Operational Creditor/Respondent No.1 under Section 9 of the Insolvency and Bankruptcy Code, 2016. The Appellant (Corporate Debtor) had invited tenders for various works in 2015. The Respondent No.1, being the Successful Bidder, was awarded the contract on 04.12.2015, which was accepted by the Appellant on the same date via email. Subsequently, the Corporate Debtor issued various purchase orders dated 28.12.2015, 29.12.2015, and 23.12.2015, totaling Rs. 5,38,50,590/-.

## Facts

Rajasthan Drugs and Pharmaceuticals Ltd. (Appellant), a Corporate Debtor, invited tenders for various works in 2015. ATE Project Pvt. Ltd. (Respondent No.1) was the successful bidder and was awarded the contract on 04.12.2015, which the Appellant accepted via email. The Corporate Debtor issued purchase orders worth Rs. 5,38,50,590/-. Respondent No.1 deposited security and started work. A letter dated 17.01.2017, issued by the Government of India on 09.01.2017, announced the shutdown of the Corporate Debtor, stopping work. Respondent No.1 was assured that outstanding liabilities would be cleared. The Appellant requested total outstanding dues. Respondent No.1 submitted details of Rs. 1,80,36,531/- accrued as of 26.03.2017. Respondent No.1 sent a legal notice on

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority's order …

**Ratio:** The court found no error

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**Reasoning:** The court reviewed the facts and circumstances and found no reason to interfere with the

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**Interpretation:** The court upheld the Adjudicating Authority's decision, indicating that the

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**Application:** Given the facts presented and the arguments raised, the court determined that

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## Parties

- **Judges:** Rakesh Kuma…; Alok Sriv…
- **Appellants:** Laiqur Rahm…
- **Respondents:** Rajasthan Drugs…; ATE Project Pvt.…

## Timeline

- **2015-01-01 — Tender Invi…**: The Appellant (Corporate Debtor)…
- **2015-12-04 — Contract A…**: The Respondent No.1 was awarded the contract, which was accepted by the Appellant on 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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