# In the matter of Rajpal Singh Solanki Vs. Quazar Infrastructure Pvt. Ltd., CA (AT) (Ins) No. 354 of 2020

> NCLAT judgment dated 2021-07-02. Citation: TCN-2021-NCLAT-00211. This case involves an appeal filed by Rajpal Singh Solanki, a Director of Minarch Overseas…

- **Court:** NCLAT
- **Order date:** 2 Jul 2021
- **Citation:** TCN-2021-NCLAT-00211
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/rajpal-singh-solanki-vs-quazar-infrastructure-pvt-ltd-ca-37e94a1a

## Summary

### Background

This case involves an appeal filed by Rajpal Singh Solanki, a Director of Minarch Overseas Private Limited (Corporate Debtor), against an order dated 25.02.2020 passed by the Adjudicating Authority (National Company Law Tribunal, New Delhi) in CP (IB) No. 615 (ND)/2018. The Adjudicating Authority admitted an application filed by Quazar Infrastructure Pvt. Ltd. (Operational Creditor) under Section 9 of the Insolvency and Bankruptcy Code (IBC), rejecting the Corporate Debtor's contention of a pre-existing dispute.

## Facts

Minarch Overseas Private Limited (Corporate Debtor) and Quazar Infrastructure Pvt. Ltd. (Operational Creditor) entered into an agreement dated January 18, 2013. A works contract was awarded to the Operational Creditor on January 15, 2013, for civil work construction of an office building with a total contract value of Rs. 5,32,74,331, to be completed by October 14, 2013. Additional work relating to fire-fighting, plumbing, and electrical work was awarded on December 21, 2013, with a completion date of September 30, 2014. The Appellant claimed the Respondent did not work according to contract conditions, the pace was slow, and the quality was sub-standard. The Operational Creditor allegedly stopped work in April 2015, leaving the project incomplete. Payments were made

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## Issues and analysis

### Issue 1: Whether a pre-existing dispute existed between the Appellant (Corporate Debtor) and Respondent No. …

**Ratio:** The existence of a dispute before the Section 8 notice must be plausible and not a

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**Reasoning:** The court reasoned that the Appellant's claim of a pre-existing dispute based on letters

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**Interpretation:** Section 8(2)(a) of the IBC mandates that the corporate debtor must notify the

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**Application:** The court applied the ratio to the facts by noting the absence of corroboration

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## Parties

- **Judges:** Dr.Alok Sri…
- **Appellants:** Rajpal Singh…
- **Respondents:** Minarch Overseas…; M/s. Quazar…

## Timeline

- **2013-01-15 — Works Contract…**: A works contract was awarded to the Operational Creditor for civil work construction of…
- **2013-10-14 — Original Project…**: The original project was to be…

## 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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