# In the matter of Aadi Best Consortium Private Limited (IB)-708(ND)2021

> NCLT judgment dated 2022-03-31. Citation: TCN-2022-NCLT-03453. The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 31 Mar 2022
- **Citation:** TCN-2022-NCLT-03453
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/aadi-best-consortium-private-limited-ib-708nd2021-62cf604f

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) by Yogesh Gupta, Sole Proprietor of Rapid Constructions, against Aadi Best Consortium Private Limited, the Corporate Debtor. The Operational Creditor, Rapid Constructions, seeks to initiate the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor due to unpaid operational debt arising from construction services provided. The debt stems from multiple agreements between the parties for construction work on the Cloud 9 Group Housing project. The Corporate Debtor made partial payments but failed to clear the outstanding balance despite multiple reminders and agreements, including a Supplementary Memorandum of Understanding (MOU).

## Facts

Yogesh Gupta, operating as Rapid Constructions, provided construction services to Aadi Best Consortium Private Limited for the Cloud 9 Group Housing project under multiple agreements dated 25.10.2012, 25.02.2013 and 22.05.2017. Rapid Constructions executed structural work for Tower A, B, C, D, L-I and S-I of the project. Invoices were raised, and payments were made on an ad-hoc basis. After completion of the work, the parties agreed to settle outstanding amounts in a composite settlement, documented in an MOU dated 31.08.2020. The Corporate Debtor made substantial payments, but a balance remained. A Supplementary MOU dated 15.04.2021 acknowledged a liability of Rs. 2,01,70,061 along with Rs. 4,73,185 for security and statutory liabilities. The Corporate Debtor paid Rs.

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## Issues and analysis

### Issue 1: Whether the Operational Creditor has established the existence of an operational debt and a default …

**Ratio:** Section 9 of the IBC requires the Operational Creditor to prove the existence of an

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**Reasoning:** The court relies on the agreements, invoices, ledger accounts, emails, and the admission

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**Interpretation:** Section 9 of the IBC is interpreted to mean that if the Operational Creditor

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**Application:** In this case, the Operational Creditor provided agreements, invoices, and

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## Parties

- **Judges:** SH. BACHU VENKAT…; SH. L. N.…
- **Appellants:** Yogesh…
- **Respondents:** Aadi Best…

## Timeline

- **2012-10-25 — Agreement between Operational Creditor and…**: Operational Creditor and Corporate Debtor entered into an agreement vide…
- **2013-02-25 — Agreement between Operational Creditor and…**: Operational Creditor and Corporate Debtor entered into an agreement vide…

## 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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