# In the matter of Drake and Scull Water & Energy India Pvt. Ltd. CP (IB) No. 7-Chd-Hry-2018

> NCLT judgment dated 2018-10-30. Citation: TCN-2018-NCLT-00446. Shivashakti Elmech Private Limited, an operational creditor, filed a petition under Section 9…

- **Court:** NCLT
- **Order date:** 30 Oct 2018
- **Citation:** TCN-2018-NCLT-00446
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/drake-and-scull-water-energy-india-pvt-ltd-cp-ib-no-7-chd-hry-2018-4b356eb7

## Summary

### Background

Shivashakti Elmech Private Limited, an operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Drake and Scull Water & Energy India Private Limited, the respondent-corporate debtor, to initiate the Insolvency Resolution Process. The operational creditor and corporate debtor entered into a service agreement dated 15.05.2012 for pipe laying and related civil and earthwork activities. The operational creditor completed the works and raised running bills from 17.07.2012 to 29.09.2014. The corporate debtor acknowledged the debt and retention money via email dated 11.12.2014. The operational creditor sent a demand notice dated 14.11.2017 under Section 8 of the Code. The respondent-corporate debtor raised objections,

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## Facts

Shivashakti Elmech Private Limited (Operational Creditor) and Drake and Scull Water & Energy India Private Limited (Corporate Debtor) entered into a service agreement on 15.05.2012 for pipe laying and related civil work. The Operational Creditor completed work and raised bills from 17.07.2012 to 29.09.2014. The Corporate Debtor provided a performance guarantee of 20% against work order No. 168 and 10% against work order No. 166. The Corporate Debtor acknowledged the debt and retention money via email on 11.12.2014. The Operational Creditor sent a demand notice on 14.11.2017. The Corporate Debtor claimed the Operational Creditor did not complete the work and misappropriated pipes. The Operational Creditor claimed outstanding balance of ₹46,56,996.81 for bills and

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## Issues and analysis

### Issue 1: Whether there was …

**Ratio:** A petition filed by the operational creditor is to be admitted if no notice of dispute

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**Reasoning:** The court observed that the respondent had not raised any issue regarding non-completion

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**Interpretation:** The existence of a dispute must be pre-existing, meaning it existed before the

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**Application:** The court found that the dispute raised by the respondent was an attempt to

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## Parties

- **Judges:** R.P.Nag…; Pradeep R.…
- **Appellants:** Shivashakti…
- **Respondents:** Drake and Scull…
- **Advocates:** Ashok Kri…; Manoj Kuma…; +1 more

## Timeline

- **2012-05-15 — Service Agr…**: Shivashakti Elmech Private Limited and Drake and Scull Water & Energy India Private…
- **2012-07-17 — Running Bills…**: Shivashakti Elmech Private Limited raised…

## 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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