# In the matter of Wave Megacity C entre Pvt. Ltd. CP IB-406-(ND)-2018

> NCLT judgment dated 2019-06-14. Citation: TCN-2019-NCLT-02882. The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 14 Jun 2019
- **Citation:** TCN-2019-NCLT-02882
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/wave-megacity-c-entre-pvt-ltd-cp-ib-406-nd-2018-6d1a8cdf

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) by M/s Fairwood Infra & Services Private Limited (Operational Creditor) against M/s Wave Megacity Centre Pvt. Ltd. (Corporate Debtor) for initiation of Corporate Insolvency Resolution Process (CIRP). The operational creditor claimed a debt of Rs.1,51,27,735/- for providing Project Management Consultancy (PMC) services based on an agreement dated 9.9.2015. The corporate debtor disputed the claim, citing a pre-existing dispute, excess payment, and an arbitration award in its favor for Rs.32,82,404/-.

## Facts

M/s Fairwood Infra & Services Private Limited (Operational Creditor) filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against M/s Wave Megacity Centre Pvt. Ltd. (Corporate Debtor) for initiation of Corporate Insolvency Resolution Process (CIRP). The Operational Creditor claimed a debt of Rs.1,51,27,735/- based on an agreement dated 9.9.2015 for providing Project Management Consultancy (PMC) services for the 'Wave City Centre' project. The Operational Creditor started providing services from 11.8.2015. The Corporate Debtor acknowledged the debt by depositing TDS on the first five invoices but did not pay the balance amount. The Corporate Debtor claimed that the Operational Creditor's services were not up to par and that they had made

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## Issues and analysis

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

**Ratio:** The existence of a genuine pre-existing dispute, meaning a dispute raised before the

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**Reasoning:** The court reasoned that the correspondence and actions of the Corporate Debtor, including

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**Interpretation:** The interpretation of 'dispute' under the IBC is broad and encompasses any

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**Application:** In this case, the Corporate Debtor had raised concerns about the quality of

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## Parties

- **Judges:** R. VARADH…; DeepaKr…
- **Appellants:** M/s Fairwood…
- **Respondents:** M/s Wave Megacity…

## Timeline

- **2015-09-09 — Agreement…**: Agreement between M/s Fairwood Infra & Services Private Limited and M/s Wave Megacity…
- **2015-08-11 — Service Comme…**: M/s Fairwood Infra & Services Private…

## 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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