# In the matter of Mayur Buildcon Private Limited Company Petition No. IB-611-ND-2019

> NCLT judgment dated 2021-07-20. Citation: TCN-2021-NCLT-01669. M/s Value Line Interiors Private Limited, an operational creditor, filed a petition under…

- **Court:** NCLT
- **Order date:** 20 Jul 2021
- **Citation:** TCN-2021-NCLT-01669
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/mayur-buildcon-private-limited-company-petition-no-ib-611-nd-2019-16e82d7e

## Summary

### Background

M/s Value Line Interiors Private Limited, an operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s Mayur Buildcon Private Limited, the corporate debtor. The application was based on an alleged default in payment for interior work carried out by the operational creditor for the corporate debtor. The corporate debtor contested the application, asserting a pre-existing dispute regarding the quality and completion of the work.

## Facts

In 2015, M/s Mayur Buildcon Private Limited (the corporate debtor) engaged M/s Value Line Interiors Private Limited (the operational creditor) to perform interior work at a property in Noida. A work order was issued on June 30, 2015, for Rs. 77,00,000/- plus applicable taxes. The operational creditor raised eight running account bills totaling Rs. 93,79,692/-, of which the corporate debtor paid Rs. 79,63,360/-. A balance of Rs. 31,43,56,154/- remained unpaid. The operational creditor claimed to have completed the work by October 31, 2015, and communicated this to the corporate debtor via email on April 21, 2018. However, the corporate debtor did not make the outstanding payment. The operational creditor sent a demand notice under Section 8 of the Insolvency and

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## Issues and analysis

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

**Ratio:** The existence of a pre-existing dispute, meaning a dispute raised before the issuance of

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**Reasoning:** The NCLT relied on email communications between the parties, which indicated that the

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**Interpretation:** The term 'pre-existing dispute' is interpreted to mean a genuine dispute raised

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**Application:** In this case, the email exchanges demonstrated that the corporate debtor had

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## Parties

- **Judges:** DEEPTI M…; SUMΙΤΑ PURK…
- **Appellants:** M/s Value Line…
- **Respondents:** M/s Mayur…

## Timeline

- **2015-06-30 — Work Order…**: Corporate debtor issued work order to the applicant company for Rs. 77,00,000/- along…
- **2015-10-31 — Completion of Interior…**: Applicant states that interior had been duly completed and handed over to the corporate…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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