# In the matter of Conclave Infratech Private Limited CP (IB) No. 732-9-HDB-2018

> NCLT judgment dated 2019-09-18. Citation: TCN-2019-NCLT-01411. Magneto Home Private Limited filed a petition under Section 9 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 18 Sept 2019
- **Citation:** TCN-2019-NCLT-01411
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/conclave-infratech-private-limited-cp-ib-no-732-9-hdb-2018-0291d7c3

## Summary

### Background

Magneto Home Private Limited filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Conclave Infratech Private Limited, claiming to be an operational creditor. The operational creditor provided furniture and home appliances to the corporate debtor on a rental and later-to-own basis, with an initial rental period of 24 months. A Master Lease Agreement (MLA) was entered into on March 27, 2017, governing the business transactions. The operational creditor delivered orders, and the corporate debtor confirmed them. However, the corporate debtor delayed payments and eventually stopped paying rent after 11 months of the first order. A demand notice was sent on June 30, 2018, demanding a sum of Rs. 1,07,26,577/-.

## Facts

Magneto Home Private Limited (Operational Creditor) provided furniture and home appliances to Conclave Infratech Private Limited (Corporate Debtor) on a rental and later-to-own basis, governed by a Master Lease Agreement (MLA) dated March 27, 2017. The initial rental period was agreed to be 24 months. The Operational Creditor delivered orders, which were confirmed by the Corporate Debtor via acceptance letters. The Corporate Debtor delayed payments and stopped paying rent after 11 months of the first order. The Operational Creditor sent a demand notice on June 30, 2018, demanding Rs. 1,07,26,577/-. The Corporate Debtor claimed that the materials were not supplied in time or in good condition, leading to disputes and delayed payments from tenants. The Corporate Debtor

…

## Issues and analysis

### Issue 1: Whether there is a pre-existing dispute between the operational creditor and the corporate debtor …

**Ratio:** A petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, is not

…

**Reasoning:** The court observed that email correspondence between the parties revealed disputes

…

**Interpretation:** The existence of a pre-existing dispute, as evidenced by correspondence and

…

**Application:** In this case, the email exchanges and the corporate debtor's complaints about

…

## Parties

- **Judges:** K. Anantha…; BINOD KUMAR…
- **Appellants:** Magneto Home…
- **Respondents:** Conclave Infratech…
- **Advocates:** Abhay Kuma…; Uma Shan…

## Timeline

- **2017-03-27 — Master Lease A…**: Parties entered into a Master Lease Agreement (MLA) in terms of which all the business…
- **2017-04-11 — First Order D…**: Operational Creditor delivered its first order in terms of MLA that was confirmed by 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/conclave-infratech-private-limited-cp-ib-no-732-9-hdb-2018-0291d7c3