# In the matter of Rajasthan Land Holdings Limited Company Petition No. (IB)-44-9-JPR-2019

> NCLT judgment dated 2019-09-24. Citation: TCN-2019-NCLT-01277. M/s. Rajputana Constructions Private Limited, the Operational Creditor, filed an application…

- **Court:** NCLT
- **Order date:** 24 Sept 2019
- **Citation:** TCN-2019-NCLT-01277
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/rajasthan-land-holdings-limited-company-petition-no-ib-44-9-jpr-2019-e8aa1258

## Summary

### Background

M/s. Rajputana Constructions Private Limited, the Operational Creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against M/s. Rajasthan Land Holdings Limited, the Corporate Debtor, for initiation of Corporate Insolvency Resolution Process (CIRP) due to unpaid operational debt. The Operational Creditor claimed that the Corporate Debtor defaulted on payments for services rendered as per a work order. The Corporate Debtor contested the application, arguing that it is a subsidiary of Pario Developers Private Limited, which in turn is part of the IL&FS group, and is covered by a moratorium imposed by NCLAT. The Corporate Debtor also raised objections regarding the demand notice issued by the Operational Creditor.

## Facts

M/s. Rajputana Constructions Private Limited (Operational Creditor) provided earth filling, site cleaning, and leveling services to M/s. Rajasthan Land Holdings Limited (Corporate Debtor) based on a work order dated 2017-09-15. The Operational Creditor raised two tax invoices: invoice no. 003 dated 2017-09-30 for Rs. 32,36,031/- and invoice no. 006 dated 2017-12-04 for Rs. 32,36,086/-, totaling Rs. 64,72,117/- (including GST). The Corporate Debtor deducted and deposited TDS of Rs. 1,09,697/- on the tax invoices. The Corporate Debtor made a payment of Rs. 39,65,335/- on 2018-06-04, but no further payments were made. The Operational Creditor issued a demand notice dated 2019-01-11 for the unpaid operational debt of Rs. 23,97,086/-. The Corporate Debtor is a public

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## Issues and analysis

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

**Ratio:** The NCLT relied on the principle that a corporate debtor is liable for its own debts, and

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**Reasoning:** The NCLT reasoned that the Operational Creditor had provided sufficient evidence of the

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**Interpretation:** Section 9 of the IBC, 2016 allows an operational creditor to initiate CIRP

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**Application:** The NCLT applied the ratio to the facts by finding that the Operational

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## Parties

- **Judges:** POONDLA BHASKARA…; RAGHU N…; +1 more
- **Appellants:** M/s. Rajputana…
- **Respondents:** M/s. Rajasthan…

## Timeline

- **2017-09-15 — Work Ord…**: Corporate Debtor issued work order No. WO/KSG/EF/2017 to Operational Creditor for earth…
- **2017-09-30 — Invoice…**: Operational Creditor raised…

## 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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