# In the matter of Ahluwalia Contracts (India) Ltd. Company Petition No. .IB-2135-ND-2019

> NCLT judgment dated 2021-05-05. Citation: TCN-2021-NCLT-02191. The application was filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, read…

- **Court:** NCLT
- **Order date:** 5 May 2021
- **Citation:** TCN-2021-NCLT-02191
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ahluwalia-contracts-india-ltd-company-petition-no-ib-2135-nd-2019-d6270180

## Summary

### Background

The application was filed 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, by M/s. A2 Interiors Products Pvt. Ltd. (Operational Creditor) to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s. Ahluwalia Contracts India Ltd. (Corporate Debtor). The applicant claimed that the corporate debtor had defaulted on payments for interior, furnishing, and allied civil and electrical works done across six projects. The corporate debtor raised objections, including the maintainability of the application due to different work orders, pre-existing disputes, and the nature of the debt.

## Facts

M/s. A2 Interiors Products Pvt. Ltd. (Applicant/Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against M/s. Ahluwalia Contracts India Ltd. (Respondent/Corporate Debtor) for defaulting on payments. The applicant claimed an outstanding amount of Rs. 12,54,61,722.42 as of 08.05.2019, along with interest at 18% p.a., for interior, furnishing, and allied civil and electrical works performed under various work orders across six projects. The work orders included projects at PNB Building Dwarka, IIIT Delhi, SBIM Kolkata, Delhi Gymkhana Club, ICCP Patna, and NATGRID AndheriaMor. The applicant sent a demand notice under Section 8, which the corporate debtor replied to, raising disputes and stating that no amount was due.

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## Issues and analysis

### Issue 1: Whether the application under Section 9 of the Insolvency and Bankruptcy Code, 2016 is maintainable …

**Ratio:** A single application can be filed for claims arising out of separate work orders. This is

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**Reasoning:** The court relied on judgments passed by the Hon'ble Supreme Court and Hon'ble NCLAT,

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

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**Application:** In this case, the applicant had claims arising from six different work orders.

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## Parties

- **Judges:** DEEPTI M…; SUMITAPURKA…
- **Appellants:** M/s A2 Interiors…
- **Respondents:** M/s Ahluwalia…

## Timeline

- **2016-01-01 — Insolvency and…**: The Insolvency and…
- **2016-01-01 — Insolvency and Bankruptcy (Application to…**: The Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 were…

## 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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