# In the matter of Zillion Infraprojects Pvt. Ltd. Vs. The Indure Private Ltd. Company Appeal (AT) (Insolvency) No. 926 of 2021

> NCLAT judgment dated 2021-12-01. Citation: TCN-2021-NCLAT-00030. Zillion Infraprojects Pvt. Ltd. filed an appeal against the order dated 03.05.2021 passed by…

- **Court:** NCLAT
- **Order date:** 1 Dec 2021
- **Citation:** TCN-2021-NCLAT-00030
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/zillion-infraprojects-pvt-ltd-vs-the-indure-private-ltd-company-appeal-5ae4e9e2

## Summary

### Background

Zillion Infraprojects Pvt. Ltd. filed an appeal against the order dated 03.05.2021 passed by the National Company Law Tribunal (NCLT), New Delhi Bench-II, in (IB)586 (ND)/2017. The NCLT had rejected the application filed by Zillion Infraprojects under Section 9 of the Insolvency and Bankruptcy Code (IBC). The dispute arose from three work orders awarded to Zillion by The Indure Private Ltd. between 2009 and 2012 for work at a Thermal Power Plant in Chhabra, Rajasthan. During the project, Zillion raised Running Account Bills, and payments were made until 2016. The Corporate Debtor, Indure, sent letters in 2013-14 pointing out breaches and delays by Zillion. Indure terminated the contract on 20th November, 2014. Zillion then issued a Demand Notice under Section 8 of the

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## Facts

Zillion Infraprojects Pvt. Ltd. was awarded three work orders by The Indure Private Ltd. between 2009 and 2012 for erection, fabrication, commissioning, and painting work at a Thermal Power Plant in Chhabra, Rajasthan. Zillion raised Running Account Bills during the project, and Indure made payments until 2016. In 2013-14, Indure sent letters to Zillion pointing out breaches and delays. On 20th November, 2014, Indure terminated the contract. Zillion issued a Demand Notice under Section 8 of the IB Code on 13.09.2017, claiming Rs.8,34,18,876/- plus interest. Indure replied on 23.09.2017, stating that the contract and claim were in dispute due to Zillion's breaches and delays. Zillion filed an application under Section 9 of the IB Code, which was dismissed as withdrawn

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority committed an error in rejecting the application under Section 9 …

**Ratio:** Section 8, sub-section (2) of the IB Code provides that the Corporate Debtor shall,

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**Reasoning:** The Adjudicating Authority considered the correspondence between the parties, including

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**Interpretation:** The definition of 'dispute' under Section 5(6) of the IB Code is inclusive and

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**Application:** In this case, the Corporate Debtor, Indure, had communicated to Zillion, the

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## Parties

- **Judges:** Ashok Bh…; Jarat Kuma…; +1 more
- **Appellants:** Zillion Infraproje…
- **Respondents:** The Indure…

## Timeline

- **2009-01-01 — Work Orders…**: The Indure Private Ltd. awarded three work orders to Zillion Infraprojects Pvt. Ltd.…
- **2014-11-20 — Contract Term…**: The Indure Private Ltd. terminated the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61 — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

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