# In the matter of Polo Queen Industrial and Fintech Limited CP (IB) 3977-MB-C-II-2019

> NCLT judgment dated 2021-10-29. Citation: TCN-2021-NCLT-00662. Mohite Infraprojects Private Limited, the Operational Creditor, filed a petition under Section…

- **Court:** NCLT
- **Order date:** 29 Oct 2021
- **Citation:** TCN-2021-NCLT-00662
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/polo-queen-industrial-and-fintech-limited-cp-ib-3977-mb-c-ii-2019-6727ebbd

## Summary

### Background

Mohite Infraprojects Private Limited, the Operational Creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Polo Queen Industrial and Fintech Limited, the Corporate Debtor. The Operational Creditor claimed that the Corporate Debtor defaulted on payments for construction work completed as per an agreement. The Corporate Debtor argued that there was a pre-existing dispute regarding the quality of work and that the Operational Creditor had been paid an excess amount compared to the total construction value.

## Facts

On February 5, 2016, Polo Queen Industrial and Fintech Limited (Corporate Debtor), through its architects, floated a tender notice. Mohite Infraprojects Private Limited (Operational Creditor) submitted a tender, which was approved. On December 20, 2017, an agreement was executed between the parties. After completing construction work, the Operational Creditor raised invoices. The Corporate Debtor's architect verified the work, and eight out of nine invoices were cleared. On June 11, 2019, an invoice for Rs. 28,14,197/- remained uncleared, along with a 50% retention amount. On October 18, 2019, the Operational Creditor served a demand notice under Section 8 of the IBC. The total debt claimed was Rs. 34,10,640/-, including the unpaid invoice, retention amount, 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, as defined under the IBC and interpreted by the

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**Reasoning:** The NCLT relied on the Corporate Debtor's evidence of correspondence and the Operational

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**Interpretation:** The interpretation of 'pre-existing dispute' requires the Adjudicating

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**Application:** In this case, the NCLT found that the Corporate Debtor had raised concerns

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## Parties

- **Judges:** Ashok Kumar…; Shyam Babu…
- **Appellants:** Mohite Infraprojec…
- **Respondents:** Polo Queen…

## Timeline

- **2016-02-05 — Tender N…**: The Corporate Debtor floated a…
- **2017-12-20 — Agreement Ex…**: Articles of Agreement were executed between the Corporate Debtor and the Operational…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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