# In the matter of Xicon International Limited vs. VA Tech Wabag Limited

> NCLAT judgment dated 2023-12-14. Citation: TCN-2023-NCLAT-00026. The appeal was filed against the order dated 27.09.2023 passed by the Adjudicating Authority…

- **Court:** NCLAT
- **Order date:** 14 Dec 2023
- **Citation:** TCN-2023-NCLAT-00026
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/xicon-international-limited-vs-va-tech-wabag-limited-64d5ce31

## Summary

### Background

The appeal was filed against the order dated 27.09.2023 passed by the Adjudicating Authority (National Company Law Tribunal, Special Bench-II, Chennai) which dismissed an application filed by the Appellant (Operational Creditor) under Section 9 of the Insolvency and Bankruptcy Code, 2016 against the Corporate Debtor. This case involves a second round of litigation. The Appellant had initially sent a demand notice under Section 8 of the Code on 03.02.2020, followed by an application under Section 9 bearing IBA/608/2020 for Rs. 2,57,00,817/-. A settlement agreement was entered on 02.10.2021, where the Corporate Debtor agreed to pay Rs. 1,60,94,701/-. The first petition IBA/608/2020 was dismissed on 04.10.2021 after a settlement was reached between the parties.

## Facts

Xicon International Limited (Appellant/Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 against VA Tech Wabag Limited (Respondent/Corporate Debtor). The initial application IBA/608/2020 was dismissed on 04.10.2021 due to a settlement agreement dated 02.10.2021 where the Corporate Debtor agreed to pay Rs. 1,60,94,701/-. The Appellant claimed the Respondent defaulted on payments, specifically the 5th and 6th tranches, leading to a fresh application under Section 9. The Respondent made payments totaling Rs. 1,06,00,000/- in installments between 04.10.2021 and 05.05.2022. The Appellant sent a demand notice on 30.09.2022, and the Respondent replied on 08.10.2022. The Appellant then filed a petition for Rs. 1,63,96,590/-,

…

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in dismissing the application filed under Section 9 of the …

**Ratio:** The Adjudicating Authority has the power to dismiss an application under Section 9 if it

…

**Reasoning:** The court reasoned that the Adjudicating Authority did not commit any error in dismissing

…

**Interpretation:** This implies that the Adjudicating Authority's decision was based on the fact

…

**Application:** In this case, the Adjudicating Authority's decision to dismiss the application

…

## Parties

- **Judges:** Rakesh Kuma…; Shreesha…; +1 more
- **Appellants:** Xicon Internationa…
- **Respondents:** V A Tech Wabag…; VA Tech Wabag…
- **Advocates:** Thriyambak J.…; Haree P…; +1 more

## Timeline

- **2020-02-03 — Demand N…**: Appellant sent a demand notice…
- **2020-02-13 — Reply to Deman…**: Reply to the demand…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclat-new-delhi/xicon-international-limited-vs-va-tech-wabag-limited-64d5ce31