# In the matter of United Projects Constructions Ltd. Vs. Aerocon Buildwell Pvt. Ltd. CA (AT) No. 164-2017

> NCLAT judgment dated 2017-11-13. Citation: TCN-2017-NCLAT-00071. United Projects Constructions Limited ('Operational Creditor') filed an application under…

- **Court:** NCLAT
- **Order date:** 13 Nov 2017
- **Citation:** TCN-2017-NCLAT-00071
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/united-projects-constructions-ltd-vs-aerocon-buildwell-pvt-ltd-ca-347ec813

## Summary

### Background

United Projects Constructions Limited ('Operational Creditor') filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 for initiation of 'Corporate Insolvency Resolution Process' against Aerocon Buildwell Private Limited ('Corporate Debtor'). The application was dismissed by the Adjudicating Authority (National Company Law Tribunal), Ahmedabad Bench, Ahmedabad, leading to the present appeal. The Respondent had filed an objection claiming the existence of a dispute, arguing that the application under Section 9 of the I&B Code was not maintainable.

## Facts

United Projects Constructions Limited, the 'Operational Creditor', initiated proceedings under Section 9 of the Insolvency and Bankruptcy Code, 2016 against Aerocon Buildwell Private Limited, the 'Corporate Debtor'. The Adjudicating Authority dismissed the application. Aerocon Buildwell Pvt. Ltd. claimed the existence of a dispute. United Projects Constructions Ltd. argued that the letter presented by Aerocon Buildwell Pvt. Ltd. was manufactured after the insolvency application. The Adjudicating Authority's order was dated 31st July, 2017. The Appellate Tribunal found no record of 'existence of dispute'. The Respondent enclosed a letter dated 10th October, 2016, and an email, but the Tribunal found these insufficient to prove the existence of a dispute.

## Issues and analysis

### Issue 1: Whether there is an 'existence of dispute' prior to the notice of demand served on …

**Ratio:** The existence of a genuine dispute prior to the initiation of insolvency proceedings is a

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**Reasoning:** The Appellate Tribunal found no record of 'existence of dispute' and questioned the

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**Interpretation:** The 'existence of dispute' must be a genuine and pre-existing dispute, not one

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**Application:** In this case, the Appellate Tribunal found the evidence presented by the

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## Parties

- **Judges:** S.J. Mukhop…; A.I.S. C…; +1 more
- **Appellants:** United Projects…
- **Respondents:** Aerocon Buildwell…; Aerocon Buildwell…
- **Advocates:** Vivek D…; Rohit G…; +2 more

## Timeline

- **2017-11-13 — Application…**: The Appellant- United Projects Constructions Limited filed an application under Section 9…
- **2017-07-31 — Application D…**: The application was dismissed by the impugned order dated 31st July, 2017 in CP No. (IB)…

## 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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