# In the matter of Ahinsa Buildtech Private Limited C.P. No. 3562-I&BP-2018

> NCLT judgment dated 2019-11-04. Citation: TCN-2019-NCLT-00729. Pravin Electricals Private Limited filed a company petition against Ahinsa Buildtech Private…

- **Court:** NCLT
- **Order date:** 4 Nov 2019
- **Citation:** TCN-2019-NCLT-00729
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ahinsa-buildtech-private-limited-cp-no-3562-ibp-2018-c49192e2

## Summary

### Background

Pravin Electricals Private Limited filed a company petition against Ahinsa Buildtech Private Limited, the Corporate Debtor, seeking to initiate the Corporate Insolvency Resolution Process (CIRP). The petitioner alleged that the Corporate Debtor defaulted on a payment of Rs. 12,63,817/- on 11.05.2017, along with interest at 9% p.a. from 10.07.2018. The petitioner claimed this amount was due as retention money for services rendered based on a work order dated 15.03.2011. The Corporate Debtor acknowledged the liability in a communication dated 11.05.2017, seeking balance confirmation. The petitioner issued a statutory demand notice on 27.07.2018 after an advocate's notice on 10.07.2018.

## Facts

Pravin Electricals Private Limited (the Petitioner) provided services to Ahinsa Buildtech Private Limited (the Corporate Debtor) based on a work order dated 15.03.2011. The Petitioner raised invoices for these services. On 11.05.2017, the Corporate Debtor sent a communication to the Petitioner seeking confirmation of the balance of Rs. 12,63,817/-, which the Corporate Debtor admitted was payable as retention money. The Corporate Debtor defaulted on a payment of Rs. 12,63,817/- on 11.05.2017, leading the Petitioner to issue a statutory demand notice on 27.07.2018, following an advocate's notice on 10.07.2018. The Corporate Debtor argued that the Petitioner's claim was disputed, that the actual retention amount was only Rs. 1,93,368/-, and that the Petitioner failed to

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted in making the …

**Ratio:** An acknowledgement of debt by the Corporate Debtor constitutes a clear admission of

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**Reasoning:** The court relied on the communication sent by the Corporate Debtor on 11.05.2017, seeking

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**Interpretation:** An explicit acknowledgement of debt, especially in writing, is strong evidence

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**Application:** In this case, the Corporate Debtor's communication served as the basis for

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## Parties

- **Judges:** SUCHITRAKAN…; V. Nallasen…
- **Appellants:** Pravin Electricals…
- **Respondents:** Ahinsa Buildtech…

## Timeline

- **2011-03-15 — Work Orde…**: Date of the work order based on which Pravin Electricals Private Limited rendered…
- **2017-05-11 — Corporate Debtor's…**: Ahinsa Buildtech Private Limited sent a communication to Pravin Electricals Private…

## 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)

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