# In the matter of Rishabnath Infrastructure (P) Ltd. Vs. GTM Builders & Promoters Pvt. Ltd. CA(AT)(Insolvency) 740-2018

> NCLAT judgment dated 2019-04-23. Citation: TCN-2019-NCLAT-00652. The appeal was filed by the Operational Creditor against an order of the Adjudicating…

- **Court:** NCLAT
- **Order date:** 23 Apr 2019
- **Citation:** TCN-2019-NCLAT-00652
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/rishabnath-infrastructure-p-ltd-vs-gtm-builders-promoters-pvt-ltd-ca-6675cc9b

## Summary

### Background

The appeal was filed by the Operational Creditor against an order of the Adjudicating Authority dated October 10, 2018, which rejected their application under Section 9 of the I&B Code on the ground of a pre-existing dispute.

## Facts

Rishabnath Infrastructure (P) Ltd., the Appellant and Operational Creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code (I&B Code) against GTM Builders & Promoters Pvt. Ltd., the Corporate Debtor. The Adjudicating Authority, vide an order dated October 10, 2018, rejected this application, citing the existence of a pre-existing dispute between the parties. During the proceedings on November 30, 2018, the Appellant's counsel contended that there was no dispute concerning Bill Nos. 24 and 25, dated December 17, 2016, and March 22, 2017, respectively. These bills were central to the application filed under Section 9 of the I&B Code, implying that the debt related to these specific invoices was undisputed. Conversely,

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority was correct in rejecting the application under Section 9 of the …

**Ratio:** An application under Section 9 of the I&B Code cannot be admitted if there is a

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**Reasoning:** The NCLAT found that the email dated March 28, 2015, and the reply to the demand notice

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**Interpretation:** The court interpreted 'pre-existing dispute' broadly to include allegations of

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**Application:** Given the evidence of a pre-existing dispute, the Adjudicating Authority was

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## Parties

- **Judges:** S.J. Mukhop…; A.I.S. C…; +2 more
- **Appellants:** Rishabnath…
- **Respondents:** GTM Builders &…
- **Advocates:** For Appel…; Amit D…; +7 more

## Timeline

- **March 28, 2015 — Email indicatin…**: An email was sent by Tushar Kumar to Sandeep Jain, mentioning shocking revelations,…
- **December 17, 2016 — Bill No. 24…**: Bill No. 24, which was a subject matter of the application under Section 9 of the I&B…

## 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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