# In the matter of Brothers Engineering and Erectors Limited IBA-441-2020

> NCLT judgment dated 2021-09-02. Citation: TCN-2021-NCLT-01218. M/s. Fagioli India Private Limited, an Operational Creditor, filed an application under Section…

- **Court:** NCLT
- **Order date:** 2 Sept 2021
- **Citation:** TCN-2021-NCLT-01218
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/brothers-engineering-and-erectors-limited-iba-441-2020-67065993

## Summary

### Background

M/s. Fagioli India Private Limited, an Operational Creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against M/s. Brother Engineering and Erectors Limited, the Corporate Debtor, seeking initiation of the Corporate Insolvency Resolution Process. The Operational Creditor claimed a sum of Rs.1,11,13,091/- was due and payable by the Corporate Debtor for services related to heavy lifting, engineering, and logistics work. The Corporate Debtor contested the application, asserting that a dispute existed between the parties regarding the completion of work, certification of invoices, and the issuance of a second work order for the same scope of work.

## Facts

M/s. Fagioli India Private Limited (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 against M/s. Brother Engineering and Erectors Limited (Corporate Debtor) for an outstanding amount of Rs.1,11,13,091/-. The Operational Creditor provided heavy lifting, engineering, and logistics services to the Corporate Debtor, who issued work order No. BEEL/NTPC-RAM-FAG-001 dated 28.12.2017 for work at Unit -01 and Unit-02-800MW ABFPPL-GE/NTPC - Ramagundam. The Operational Creditor started the work and raised invoices, which the Corporate Debtor accepted for Unit 01 and Unit 02. The Corporate Debtor issued a letter dated 02.03.2020 with de-scope details, reflecting a revised order value of Rs.97,75,000/-. The Corporate Debtor

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## Issues and analysis

### Issue 1: Whether there exists a 'dispute' between the parties in relation to the amount claimed by the …

**Ratio:** The test for determination for the Adjudicating Authority is to see at the stage of

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**Reasoning:** The Tribunal observed that the Corporate Debtor had enclosed e-mail communications which

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**Interpretation:** The Supreme Court in 'Mobilox Innovations Pvt. Ltd.' Vs. 'Kirusa Software Pvt.

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**Application:** The Tribunal found that the Corporate Debtor had raised disputes and

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## Parties

- **Judges:** R. Sucha…; Anil Ku…
- **Appellants:** M/s. Fagioli…
- **Respondents:** M/s. Brother…

## Timeline

- **2017-11-01 — Operational Creditor…**: The Operational Creditor approached the Corporate Debtor in November 2017 and expressed…
- **2017-11-27 — Corporate Debto…**: The Corporate Debtor addressed an e-mail dated 27.11.2017, outlining requirements for the…

## 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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