# In the matter of Associated Drilling & Services Ltd. CP-IB-291-ND-2018

> NCLT judgment dated 2018-08-21. Citation: TCN-2018-NCLT-00915. The case involves an application filed by Tejwant Singh, a consultant, against Associated…

- **Court:** NCLT
- **Order date:** 21 Aug 2018
- **Citation:** TCN-2018-NCLT-00915
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/associated-drilling-services-ltd-cp-ib-291-nd-2018-9ba8a291

## Summary

### Background

The case involves an application filed by Tejwant Singh, a consultant, against Associated Drilling & Services Ltd. under Section 9 of the Insolvency and Bankruptcy Code, 2016, for initiating the Corporate Insolvency Resolution Process (CIRP) due to a default in debt. The applicant provided consultancy services to the respondent company for drilling and development of tubewells and borewells, starting in April 2009. The respondent company admitted a liability of Rs. 13,57,114/- as of March 31, 2015, through confirmation of accounts. Despite repeated requests, the respondent company failed to release the admitted liability. The applicant then issued a notice under Section 8 of the Code, which also went unanswered.

## Facts

Tejwant Singh, a consultant, filed an application against Associated Drilling & Services Ltd. under Section 9 of the Insolvency and Bankruptcy Code, 2016. The dispute arose from consultancy services provided by Tejwant Singh to Associated Drilling & Services Ltd. for drilling and development of tubewells and borewells, starting in April 2009. The respondent company admitted a liability of Rs. 13,57,114/- as of March 31, 2015, through confirmation of accounts. Despite requests, the respondent did not release the payment. A Section 8 notice was issued on February 2, 2018, and sent via speed post on February 3, 2018, received on February 7, 2018, but the respondent did not reply or make any payment. The respondent argued that they were not in a position to pay,

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## Issues and analysis

### Issue 1: Whether the application filed by the applicant is maintainable under Section 9 of the Insolvency …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016 allows an operational creditor to

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**Reasoning:** The court found that there was a debt and default, and the respondent's reply was

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**Interpretation:** Section 9 provides a mechanism for operational creditors to recover their dues

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**Application:** The court applied Section 9 to the facts of the case, finding that the

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## Parties

- **Judges:** R. VARADH…; V.K. SUB…
- **Appellants:** Tejwant…
- **Respondents:** Associated…; M/s Associated…

## Timeline

- **2009-04-01 — Consultancy A…**: Respondent company approached the Applicant for consultancy services in drilling and…
- **2015-03-31 — Liability Ad…**: Respondent company admitted liability of Rs. 13,57,114/- towards the Applicant by way of…

## 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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