# In the matter of Reliable Spaces Private Limited CP (IB) 3699-MB-2018

> NCLT judgment dated 2019-02-22. Citation: TCN-2019-NCLT-04711. P&P Legal, an operational creditor, filed a company petition under Section 9 of the Insolvency…

- **Court:** NCLT
- **Order date:** 22 Feb 2019
- **Citation:** TCN-2019-NCLT-04711
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/reliable-spaces-private-limited-cp-ib-3699-mb-2018-a0762985

## Summary

### Background

P&P Legal, an operational creditor, filed a company petition under Section 9 of the Insolvency & Bankruptcy Code, 2016 (I&B Code) against Reliable Spaces Private Limited, the corporate debtor, to initiate Corporate Insolvency Resolution Process (CIRP). The basis for the petition was the corporate debtor's alleged default in making payment of ₹3,43,125/- including interest, for legal services provided by P&P Legal. The corporate debtor denied any outstanding liability, claiming they never instructed the petitioner to provide any services. The petitioner argued that the corporate debtor's consultants approached them on behalf of the debtor, seeking legal services related to a proposed loan facility from SBI.

## Facts

P&P Legal, an operational creditor, claimed that Reliable Spaces Private Limited, the corporate debtor, defaulted on a payment of ₹3,43,125/- for legal services. P&P Legal was approached by the corporate debtor's consultants, Mr. Gaurav Mehta and Mr. Tarak Gor of Pristine Advisory Services, to provide legal services related to a proposed loan facility from SBI. P&P Legal drafted and reviewed loan documents, including a Loan Agreement, Deed of Hypothecation, and Escrow Account Agreement. A 'Bill of Costs' for ₹2,25,000/- was raised and sent to Mr. Gaurav Mehta. The corporate debtor later withdrew from the proposed loan transaction. P&P Legal sent a demand notice under Section 8 of the I&B Code, which the corporate debtor replied to, denying any

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## Issues and analysis

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

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016 stipulates the requirements for an

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**Reasoning:** The court found that the application was complete in all respects as required by law. The

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**Interpretation:** The completeness of an application under Section 9 is a prerequisite for its

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**Application:** The court applied the ratio to the facts of the case and found that the

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## Parties

- **Judges:** V. P. S…; RavikumarDu…
- **Appellants:** P&P L…
- **Respondents:** Reliable Spaces…

## Timeline

- **2015-05-07 — Application…**: The Respondent applied to SBI for a…
- **2015-08-04 — SBI Sanction…**: SBI sanctioned a LRD Term Loan of…

## 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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