# In the matter of Xionn Services Pvt. Ltd. Vs. Aman Hospitality Pvt. Ltd. CA(AT)(Insolvency) No. 810-2019

> NCLAT judgment dated 2019-08-08. Citation: TCN-2019-NCLAT-00364. The Appellant, an Operational Creditor, filed an application under Section 9 of the…

- **Court:** NCLAT
- **Order date:** 8 Aug 2019
- **Citation:** TCN-2019-NCLAT-00364
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/xionn-services-pvt-ltd-vs-aman-hospitality-pvt-ltd-ca-16c9d432

## Summary

### Background

The Appellant, an Operational Creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of the Corporate Insolvency Resolution Process against M/s. Aman Hospitality Private Limited (Corporate Debtor). The Adjudicating Authority (National Company Law Tribunal), Principal Bench, New Delhi, rejected the claim due to the existence of a dispute.

## Facts

The Appellant, Xionn Services Pvt. Ltd., filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process against M/s. Aman Hospitality Private Limited, the Corporate Debtor. The Adjudicating Authority rejected the application due to the existence of a dispute. The Respondent had raised concerns about the quality of work performed by the Appellant, specifically regarding waterproofing, in replies dated 26th December, 2015, and 8th January, 2016. The Appellant's counsel argued that a letter dated 8th May, 2010, should have led to the admission of the matter for resolution. The NCLAT condoned a 15-day delay in filing the appeal but ultimately dismissed it.

## 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 Insolvency and Bankruptcy Code, 2016, can be

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**Reasoning:** The court reasoned that the respondent had raised a dispute regarding the quality of work

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**Interpretation:** The interpretation of Section 9 of the IBC allows for the rejection of an

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**Application:** In this case, the respondent's concerns about the quality of work, raised in

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## Parties

- **Judges:** S.J. Mukhop…; A.I.S. C…; +1 more
- **Appellants:** Xionn Services…
- **Respondents:** M/s. Aman…; M/s. Aman…
- **Advocates:** Suman D…; Ramesh Wa…

## Timeline

- **2010-05-08 — Letter Placin…**: Appellant's counsel referred to a letter dated 8th May, 2010, arguing that the matter…
- **2015-12-26 — Respondent Raises…**: Respondent raised a dispute relating to the quality of work in their reply dated 26th…

## 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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