# In the matter of IREO Fiveriver Private Limited Company Petition No. (IB)-408 (ND)-2018

> NCLT judgment dated 2018-12-13. Citation: TCN-2018-NCLT-00093. The case pertains to a petition filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 13 Dec 2018
- **Citation:** TCN-2018-NCLT-00093
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ireo-fiveriver-private-limited-company-petition-no-ib-408-nd-2018-08765ef3

## Summary

### Background

The case pertains to a petition filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, by M/S Worxpace Consulting Private Limited (the Applicant/Operational Creditor) against M/S Ireo Fiveriver Private Limited (the Corporate Debtor) for initiation of the Corporate Insolvency Resolution Process (CIRP). The Applicant claimed that the Corporate Debtor defaulted on payments for consultancy services provided for an integrated township project. The Corporate Debtor argued that it was facing a liquidity crisis due to delays in project approvals and an interim order by the Supreme Court, and that the Applicant had an alternate remedy available through arbitration as per Clause 16 of their agreement. The Corporate Debtor also contended that the application was

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## Facts

M/S Worxpace Consulting Private Limited (Applicant) filed a petition against M/S Ireo Fiveriver Private Limited (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, claiming unpaid dues for consultancy services. The Applicant and Corporate Debtor entered into an agreement on 09.08.2010, with three supplementary agreements amending certain clauses. The Applicant provided consultancy services for the Corporate Debtor's integrated township project in Panchkula, Haryana. The last invoice was raised on 01.09.2015 for Rs. 7,52,400/-. A demand notice was sent on 28.11.2017 under Section 8 of the I&B Code, 2016, but the Corporate Debtor did not reply. The Corporate Debtor admitted the default in its reply dated 26.07.2018, but claimed financial

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## Issues and analysis

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

**Ratio:** Section 9(5) of the IBC, 2016, provides for the admission of an application if the

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**Reasoning:** The court found that the Corporate Debtor had admitted the default in its reply to the

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**Interpretation:** Section 9 of the IBC allows an operational creditor to initiate CIRP against a

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**Application:** The Corporate Debtor admitted the default, and the Applicant's claim was within

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## Parties

- **Judges:** DEEPTI M…
- **Appellants:** M/S WORXPACE…
- **Respondents:** M/S IREO FIVERIVER…
- **Advocates:** Akhil G…; Ramakan…

## Timeline

- **2010-08-09 — Agreement…**: Agreement between M/S Worxpace Consulting Private Limited and M/S Ireo Fiveriver Private…
- **2010-12-22 — First Supplementary…**: Parties entered into 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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