# In the matter of Substantia Capital Services LLP Vs Neelkanth Realtors Pvt Ltd CA (AT) No.697-2018

> NCLAT judgment dated 2019-05-06. Citation: TCN-2019-NCLAT-00583. The Appellant, claiming to be an Operational Creditor, filed an application under Section 9…

- **Court:** NCLAT
- **Order date:** 6 May 2019
- **Citation:** TCN-2019-NCLAT-00583
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/substantia-capital-services-llp-vs-neelkanth-realtors-pvt-ltd-ca-197ba9f4

## Summary

### Background

The Appellant, claiming to be an Operational Creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 against Neelkanth Realtors Private Limited (Corporate Debtor). The Adjudicating Authority (National Company Law Tribunal), Mumbai Bench, rejected the application by an order dated 31st August, 2018, on different grounds. The appellant claims to have facilitated the Corporate Debtor in obtaining a loan from a Financial Creditor and is entitled to a fee that has not been paid since 2015.

## Facts

Substantia Capital Services LLP, claiming to be an Operational Creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 against Neelkanth Realtors Private Limited, the Corporate Debtor. The Adjudicating Authority (NCLT), Mumbai Bench, rejected the application on August 31, 2018. The Appellant claims to have facilitated the Corporate Debtor in obtaining a loan from a Financial Creditor and is entitled to a fee that has not been paid since 2015. The Respondent argued that a pre-existing dispute existed, referring to a letter dated October 28, 2016. The Appellant argued that the dispute was a mere bluster, citing a Supreme Court decision. The court found that a pre-existing dispute existed based on the Respondent's letter.

## Issues and analysis

### Issue 1: Whether the application under Section 9 of the Insolvency and Bankruptcy Code, 2016 is maintainable …

**Ratio:** An application under Section 9 of the Insolvency and Bankruptcy Code, 2016 is not

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**Reasoning:** The court found that a pre-existing dispute existed based on the letter dated 28th

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**Interpretation:** The existence of a pre-existing dispute, as evidenced by communication between

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**Application:** In this case, the court applied the ratio by examining the letter from the

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## Parties

- **Judges:** S.J. Mukhop…; A.I.S. C…
- **Appellants:** Substantia…
- **Respondents:** Neelkanth…; Neelkanth…

## Timeline

- **2018-08-31 — NCLT Ord…**: The Adjudicating Authority (National Company Law Tribunal), Mumbai Bench, rejected the…
- **2019-05-06 — NCLAT Or…**: The NCLAT dismissed the appeal, holding that the application under Section 9 was not…

## 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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