# In the matter of Shri Balaji Infradevelopers Private Limited (IB)-1033(ND)2019

> NCLT judgment dated 2019-09-20. Citation: TCN-2019-NCLT-01334. M/s Aanav Construction Co., an operational creditor, filed a petition under Section 9 of the…

- **Court:** NCLT
- **Order date:** 20 Sept 2019
- **Citation:** TCN-2019-NCLT-01334
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shri-balaji-infradevelopers-private-limited-ib-1033nd2019-2e1fee75

## Summary

### Background

M/s Aanav Construction Co., an operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s Shri Balaji Infradevelopers Pvt. Ltd., the corporate debtor. The operational creditor claimed that the corporate debtor defaulted on payments for construction work completed under a sub-contract. The corporate debtor contested the claim, alleging that the work orders and completion certificates were fabricated and manipulated.

## Facts

M/s Aanav Construction Co. (Operational Creditor) filed a petition under Section 9 of the IBC, 2016, against Shri Balaji Infradevelopers Private Limited (Corporate Debtor) for defaulting on payments. The Operational Creditor and Corporate Debtor entered into a sub-contract for construction work on NH-2 in Uttar Pradesh, commencing on 2014-07-01. The Operational Creditor completed the work on 2015-03-15, with a total liability of Rs. 6,28,66,367 against a contract price of Rs. 5,21,51,780. The Corporate Debtor issued a Work Completion Certificate on 2019-01-11. The outstanding liability as of 2019-03-31 was Rs. 3,00,37,703. The Operational Creditor sent a demand notice on 2019-03-14 under Section 8 of the IBC, which was delivered on 2019-03-15. The Corporate Debtor

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## Issues and analysis

### Issue 1: Whether the dispute raised by the Corporate Debtor is a pre-existing dispute as required under the …

**Ratio:** The existence of a pre-existing dispute is a critical factor in determining the

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**Reasoning:** The court reasoned that there was no evidence on record to suggest that the dispute was

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**Interpretation:** The interpretation of 'pre-existing dispute' requires that the dispute must be

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**Application:** In this case, the Corporate Debtor's claim of fabricated documents and inflated

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## Parties

- **Judges:** Ina Mal…; Shri. L. N.…
- **Appellants:** M/s Aanav…
- **Respondents:** Balaji Infradevelo…

## Timeline

- **2014-06-29 — Work Orde…**: Work Order No. SBIPL/2014-15/007 was issued…
- **2014-07-01 — Commencement…**: Construction work commenced at the…

## 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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