# 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-02886. The case involves an application filed by M/s Fairwood Infra & Services Private Limited…

- **Court:** NCLT
- **Order date:** 14 Jun 2019
- **Citation:** TCN-2019-NCLT-02886
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/wave-megacity-c-entre-pvt-ltd-cp-ib-406-nd-2018-d8aa98c1

## Summary

### Background

The case involves an application filed by M/s Fairwood Infra & Services Private Limited (Operational Creditor) under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) for initiating Corporate Insolvency Resolution Process (CIRP) against M/s Wave Megacity Centre Pvt. Ltd. (Corporate Debtor). The operational debt claimed is Rs.1,51,27,735/- related to services rendered by the petitioner for providing Project Management Consultancy (PMC) for the 'Wave City Centre' project. An agreement was entered into between the parties on 9.9.2015. The Corporate Debtor disputes the claim, asserting a pre-existing dispute and excess payment to the Operational Creditor.

## Facts

M/s Fairwood Infra & Services Private Limited (Operational Creditor) provided Project Management Consultancy (PMC) services to M/s Wave Megacity Centre Pvt. Ltd. (Corporate Debtor) for the 'Wave City Centre' project based on an agreement dated 9.9.2015. The Operational Creditor claimed an outstanding debt of Rs.1,51,27,735/-. The Corporate Debtor deposited TDS on the first five invoices but did not pay the balance amount of TDS for the remaining invoices. The Corporate Debtor also made certain deductions consented to by the Operational Creditor. The Corporate Debtor invoked the arbitration clause in the agreement and initiated arbitration proceedings, resulting in an award of Rs.32,82,404/- in favor of the Corporate Debtor. The Operational Creditor challenged the

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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 ratio is based on the interpretation of Section 9(5)(2)(d) of the IBC, 2016, which

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**Reasoning:** The court reasoned that the Corporate Debtor had raised a claim for excess payment even

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**Interpretation:** The interpretation of Section 9(5)(2)(d) of the IBC, 2016, and the Supreme

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**Application:** In this case, the court applied the ratio to the facts by considering the

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## Parties

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

## Timeline

- **2015-09-09 — Agreement…**: Agreement entered into between M/s Fairwood Infra & Services Private Limited and M/s Wave…
- **2016-12-16 — Corporate Debto…**: M/s Wave Megacity Centre Pvt. Ltd. claimed a sum of Rs.32,82,404/- from M/s Fairwood…

## 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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