# In the matter of Aashir Engineering Pvt. Ltd.

> NCLT judgment dated 2024-03-21. Citation: TCN-2024-NCLT-02000. Jay Infraspace Pvt Ltd, an operational creditor, filed an application under Section 9 of the…

- **Court:** NCLT
- **Order date:** 21 Mar 2024
- **Citation:** TCN-2024-NCLT-02000
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/aashir-engineering-pvt-ltd-01924c55

## Summary

### Background

Jay Infraspace Pvt Ltd, an operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, against Aashir Engineering Pvt Ltd, the corporate debtor, seeking to initiate Corporate Insolvency Resolution Process (CIRP). The applicant, a MSME, claimed a default amount of Rs. 1,25,32,630/-. The corporate debtor denied the claim, citing pre-existing disputes and termination of services. The applicant contended that they were engaged in construction and civil infrastructure work, including sub-contracts for the corporate debtor, and supplied materials and services between October 2017 and November 2019.

## Facts

Jay Infraspace Pvt Ltd (Operational Creditor) filed an application under Section 9 of the IBC against Aashir Engineering Pvt Ltd (Corporate Debtor) to initiate CIRP. The Operational Creditor claimed a default amount of Rs. 1,25,32,630/-. The Operational Creditor is a MSME. The Corporate Debtor was incorporated on 18.10.2007. The Operational Creditor was engaged in construction and civil infrastructure work and had supplied materials and services to the Corporate Debtor between October 2017 and November 2019. The Corporate Debtor was allotted work contract in connection with 4.5 MLD Capacity water supply system for Zydus Cadila. The Corporate Debtor made payments on adhoc basis and last such payment was made on 24.10.2019. The Corporate Debtor confirmed the dues in the

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## Issues and analysis

### Issue 1: Whether the application for initiating Corporate Insolvency Resolution Process under Section 9 of …

**Ratio:** The existence of a pre-existing dispute between the operational creditor and the

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**Reasoning:** The court noted that there were disputes regarding the quality of work, the validity of

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**Interpretation:** Section 9 of the IBC requires that the debt claimed by the operational creditor

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**Application:** In this case, the court found that the disputes regarding the quality of work,

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## Parties

- **Judges:** Chitra Ha…; Velamur G Venkata…
- **Appellants:** Jay Infraspace…
- **Respondents:** Aashir Engineering…
- **Advocates:** Jaimin…; Hirwa…; +3 more

## Timeline

- **2007-10-18 — Incorporation of…**: Aashir Engineering Pvt…
- **2017-10-01 — Supply of Materials and…**: Operational Creditor supplied material and…

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