# In the matter of Umang Town Planner Pvt. Ltd. IB-170(ND)-2020

> NCLT judgment dated 2021-12-21. Citation: TCN-2021-NCLT-00116. The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 21 Dec 2021
- **Citation:** TCN-2021-NCLT-00116
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/umang-town-planner-pvt-ltd-ib-170nd-2020-9ec098c3

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, by Rajiv Tiwari, an operational creditor, against M/s Umang Town Planner Pvt. Ltd., the corporate debtor, for initiation of Corporate Insolvency Resolution Process (CIRP). The operational creditor claimed unpaid dues for labor supplied to the corporate debtor for projects including DMRC Project CC-95. The corporate debtor contested the claim, asserting that full and final settlement had already been made, referencing a separate project (Lucknow Metro Rail Corporation - LMRC) and a letter from the operational creditor acknowledging full settlement. The operational creditor refuted this, stating the settlement related to a different project and the dues for DMRC CC-95

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## Facts

Rajiv Tiwari, operating as M/s Rajiv Enterprises, supplied labor to M/s Umang Town Planner Pvt. Ltd. for various projects, including DMRC Project CC-95. DMRC awarded work to M/s Metcon India Reality and Infrastructure Pvt. Ltd., who then subcontracted part of the work to M/s Umang Town Planner Pvt. Ltd. M/s Umang Town Planner Pvt. Ltd. further engaged Rajiv Tiwari for labor supply. Rajiv Tiwari claimed outstanding dues of Rs. 8,31,582/- for labor supplied between February 2017 and April 2017 for the DMRC project. The corporate debtor made partial payments totaling Rs. 75,000 via cheque, Rs. 10,000 in cash, and Rs. 93,000 deducted as TDS, along with a debit of Rs. 4244. Rajiv Tiwari sent reminders and a legal notice dated 08.03.2019 for the outstanding payment. The

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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:** Section 9 of the Insolvency and Bankruptcy Code, 2016, allows an operational creditor to

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**Reasoning:** The court considered the submissions and evidence presented by both parties to determine

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**Interpretation:** Section 9 provides a mechanism for operational creditors to recover their dues

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**Application:** The court found that the operational creditor had demonstrated that a debt was

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## Parties

- **Judges:** DHARMINDER…; Prasanta Kumar…
- **Appellants:** Rajiv T…
- **Respondents:** M/s Umang Town…

## Timeline

- **2017-02-01 — Labor Su…**: Operational creditor supplied labour from February 2017 to April 2017 for the Project…
- **2017-10-13 — Letter from Corporate…**: Corporate debtor handed over a letter dated 13.10.2017 to operational creditor which was…

## 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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