# In the matter of Pan Realtors Pvt. Ltd. IB-645(ND)2019

> NCLT judgment dated 2019-07-18. Citation: TCN-2019-NCLT-02443. M/s. Ved Contracts Pvt. Ltd., the Operational Creditor, filed a petition under Section 9 of the…

- **Court:** NCLT
- **Order date:** 18 Jul 2019
- **Citation:** TCN-2019-NCLT-02443
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/pan-realtors-pvt-ltd-ib-645nd2019-1928bd4f

## Summary

### Background

M/s. Ved Contracts Pvt. Ltd., the Operational Creditor, filed a petition under Section 9 of the IBC, 2016, seeking initiation of the Insolvency Resolution process against M/s. Pan Realtors Pvt. Ltd., the Corporate Debtor. The Operational Creditor claimed that they were awarded work orders for the Corporate Debtor's project, PAN OASIS, and that despite part payments, a significant amount remained unpaid. The Corporate Debtor disputed the claim, citing discrepancies and the need for reconciliation of accounts.

## Facts

M/s. Ved Contracts Pvt. Ltd. (Operational Creditor) filed a petition against M/s. Pan Realtors Pvt. Ltd. (Corporate Debtor) under Section 9 of the IBC, 2016. The Operational Creditor claimed that they were awarded work orders for the Corporate Debtor's project, PAN OASIS, between January 2010 and January 2014. The Operational Creditor stated that the Corporate Debtor made part payments totaling Rs. 16,83,03,963/-, but a balance of Rs. 2,41,58,130/- remained due. The Corporate Debtor had raised a debit note of Rs. 6,21,164/-, which the Operational Creditor never accepted. A demand notice dated 05.01.2019 was issued to the Corporate Debtor, demanding the outstanding balance. The Corporate Debtor replied, disputing the liability. The Corporate Debtor also claimed that the

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor is entitled to seek recovery or is justified in withholding the …

**Ratio:** The court is not to consider the justification of withholding the amount/retention money

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**Reasoning:** The court stated that it is not within its purview to weigh the evidentiary value of the

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**Interpretation:** The court interprets that its role is not to adjudicate the merits of the

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**Application:** The court applied this principle by acknowledging that a plausible defence had

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## Parties

- **Judges:** Ina Mal…; SH. V.K. SU…
- **Appellants:** M/s. Ved Contracts…
- **Respondents:** M/s. Pan Realtors…

## Timeline

- **2010-01-01 — Work Orders…**: Four work orders were awarded to the Operational Creditor between January 2010 and…
- **2014-01-01 — Work Exec…**: The work was executed pursuant…

## 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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