# In the matter of Simplex Infrastructures Limited C.P. (IB) No. 971-KB-2018

> NCLT judgment dated 2019-08-09. Citation: TCN-2019-NCLT-02004. RDC Concrete (India) Private Limited, an operational creditor, filed an application under…

- **Court:** NCLT
- **Order date:** 9 Aug 2019
- **Citation:** TCN-2019-NCLT-02004
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/simplex-infrastructures-limited-cp-ib-no-971-kb-2018-0b6c1b0a

## Summary

### Background

RDC Concrete (India) Private Limited, an operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Simplex Infrastructures Limited, the corporate debtor, for initiating the corporate insolvency resolution process. The application was based on outstanding dues for the supply of ready-mix concrete. The corporate debtor contested the application, claiming pre-existing disputes and raising concerns about the quality of supplies. The operational creditor argued that the corporate debtor had not raised any disputes earlier and had even made partial payments.

## Facts

RDC Concrete (India) Private Limited (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Simplex Infrastructures Limited (Corporate Debtor) for initiating the Corporate Insolvency Resolution Process (CIRP). The application was based on outstanding dues of Rs. 3,63,45,375/- as of April 30, 2018, for the supply of ready-mix concrete. The Operational Creditor had supplied ready-mix concrete to the Corporate Debtor for its projects in Mumbai and Kolkata, raising invoices totaling Rs. 5,51,42,721/-, against which the Corporate Debtor paid Rs. 2,31,38,380/-. The Operational Creditor issued a demand notice on April 2, 2018, which was received by the Corporate Debtor on April 4, 2018. The Corporate Debtor failed to

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## Issues and analysis

### Issue 1: Whether there was a pre-existing dispute between the Operational Creditor and the Corporate Debtor …

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

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**Reasoning:** The court considered the correspondence between the parties, the timing of the disputes

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**Interpretation:** The court interpreted the evidence to suggest that the disputes raised by the

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

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## Parties

- **Judges:** Jinan…; Harish Chander…
- **Appellants:** RDC Concrete…
- **Respondents:** SIMPLEX INFRASTRUC…; Simplex Infrastruc…

## Timeline

- **2016-01-01 — Enactment…**: The Insolvency and…
- **2017-05-16 — Operational Creditor's…**: Operational Creditor sent numerous emails to the Corporate Debtor requesting payment 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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