# In the matter of Aadi Buildwell Private Limited Company Petition (IB) No. 139-ND-2022

> Read the full IBC case summary for In the matter of Aadi Buildwell Private Limited Company Petition (IB) No. 139-ND-2022. NCLT judgment dated 2022-06-06.…

- **Court:** NCLT
- **Order date:** 6 Jun 2022
- **Citation:** TCN-2022-NCLT-04688
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/aadi-buildwell-private-limited-company-petition-ib-no-139-nd-2022-24a744f1

## Summary

### Background

The operational creditor filed an application under Section 9 of the IBC, 2016, based on an arbitration award. The maintainability of this application, specifically whether an arbitration award constitutes an operational debt, was the primary point of consideration.

## Facts

Misty Meadows Private Limited, the operational creditor, filed a Company Petition (IB) No. 139/ND/2022 against Aadi Buildwell Private Limited, the corporate debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016. The application was based on an Arbitration Award, and the primary issue for consideration was whether an application under Section 9 of the IBC is maintainable on the basis of an Arbitration Award. The matter was heard on February 24, 2022, regarding the issuance of notice. The operational creditor argued that an Arbitration Award falls under the definition of operational debt and relied on a Supreme Court decision reported in (2018)17 SCC 662

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## Issues and analysis

### Issue 1: Whether an application under Section 9 of the IBC, 2016, is maintainable on the basis of an…

**Ratio:** An Arbitration Award for compensation for damages due to a breach of agreement does not…

**Reasoning:** The NCLT referred to the definition of 'Operational Debt' under Section 5(21) of the IBC,…

**Interpretation:** The court interpreted 'operational debt' strictly to mean a claim arising from…

**Application:** The NCLT applied this interpretation to the facts, noting that the applicant's…

## Parties

- **Judges:** Sh. Abni Ranjan…; Sh. Hemant Kumar…
- **Advocates:** Eshna K…; Nishant…; +2 more

## Timeline

- **December 19, 2020 — Arbitration…**: Arbitration Award passed, forming the basis…
- **February 24, 2022 — Hearing on Notice…**: The matter was heard on the point of…

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