# In the matter of Vee Rubber India Private Limited C.P. No. (IB) 492-9-NCLT-AHM-2019

> NCLT judgment dated 2020-11-24. Citation: TCN-2020-NCLT-00221. Adroit Structural Engineers Private Limited, an operational creditor, filed a petition under…

- **Court:** NCLT
- **Order date:** 24 Nov 2020
- **Citation:** TCN-2020-NCLT-00221
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/vee-rubber-india-private-limited-cp-no-ib-492-9-nclt-ahm-2019-0d3f7930

## Summary

### Background

Adroit Structural Engineers Private Limited, an operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Vee Rubber India Private Limited, the corporate debtor, for unpaid operational debt. The debt arose from work orders placed by Vee Rubber for civil, structural, and infrastructure works. A dispute arose regarding the payment of GST levied on Running Account (RA) bills, with the operational creditor claiming non-payment despite raising invoices and sending reminders. The corporate debtor contended that the application was not maintainable due to a pre-existing dispute and claimed liquidated damages for delays in completing the work.

## Facts

Adroit Structural Engineers Private Limited (operational creditor) provided civil, structural, and infrastructure services to Vee Rubber India Private Limited (corporate debtor) based on work orders dated 2016-05-18 and 2016-09-02. The parties agreed to general contract conditions, drawings, and bills of quantities. The operational creditor raised 19 Running Account (RA) bills for the work done. After the implementation of new GST laws in India, the contractor charged 9% SGST and 9% CGST from RA Bill No. 10 onwards. The operational creditor claimed that Rs. 1,03,65,075.39, representing the GST receivable amount, remained outstanding. Despite reminders, the corporate debtor did not pay the operational debt, leading the operational creditor to issue a demand notice dated

…

## Issues and analysis

### Issue 1: Whether the application under Section 9 of the …

**Ratio:** The Adjudicating Authority has to determine if there is an operational debt exceeding Rs.

…

**Reasoning:** The court considered the facts and circumstances, the Hon'ble Supreme Court Judgement,

…

**Interpretation:** Section 9 of the IBC allows an operational creditor to initiate CIRP if a

…

**Application:** The court found that the operational creditor was able to establish that there

…

## Parties

- **Judges:** Manorama…; Chockalingam…
- **Appellants:** Adroit Structural…
- **Respondents:** Vee Rubber India…

## Timeline

- **2016-05-18 — Work Orde…**: Corporate debtor placed work order for…
- **2016-09-02 — Work Orde…**: Corporate debtor placed work order for…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/vee-rubber-india-private-limited-cp-no-ib-492-9-nclt-ahm-2019-0d3f7930