# In the matter of Megacity Apartments Private Limited C.P. (IB) No. 459-KB-2018

> NCLT judgment dated 2019-08-30. Citation: TCN-2019-NCLT-01656. The case involves an application filed by Subrata Sarkar, an operational creditor, under…

- **Court:** NCLT
- **Order date:** 30 Aug 2019
- **Citation:** TCN-2019-NCLT-01656
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/megacity-apartments-private-limited-cp-ib-no-459-kb-2018-ee3c1b5d

## Summary

### Background

The case involves an application filed by Subrata Sarkar, an operational creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Megacity Apartments Private Limited, the corporate debtor. The operational creditor claimed that the corporate debtor defaulted in paying an outstanding amount of Rs. 9,86,634/-. The corporate debtor had issued a work order to the operational creditor for carrying out external sewage, drainage, and water supply works. The operational creditor completed works aggregating to Rs. 37,22,300/-, but the corporate debtor only paid Rs. 28,33,249/-.

## Facts

Subrata Sarkar, an operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against Megacity Apartments Private Limited, the corporate debtor. The corporate debtor issued a work order dated 06.11.2014 to the operational creditor for sewage, drainage, and water supply works. The operational creditor completed works worth Rs. 37,22,300/-, but only Rs. 28,33,249/- was paid. An amount of Rs. 7,39,051/- remained outstanding since 01.10.2016, along with retention money of Rs. 59,125/-. The operational creditor issued a demand notice on December 6, 2017, but received no reply. The corporate debtor proposed Mr. Ram Ratan Modi as the Resolution Professional, but he withdrew his consent. The corporate debtor denied

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## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor under Section 9 of the Insolvency and …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016 allows an operational creditor to

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**Reasoning:** The court observed that the operational creditor had filed the application under Section

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**Interpretation:** Section 9 provides the mechanism for operational creditors to trigger the

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**Application:** The court found that the operational creditor had met the requirements of

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## Parties

- **Judges:** Jinan…; Harish Chander…
- **Appellants:** Subrata S…
- **Respondents:** Megacity Apartment…
- **Advocates:** Shaunak…; Sayanta…; +1 more

## Timeline

- **2014-11-06 — Work Order…**: Corporate Debtor issued a work order to the Operational Creditor for sewage, drainage,…
- **2016-10-01 — Amount Beca…**: The principle sum of Rs. 7,39,051/-…

## 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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