# In the matter of Aashir Engineering Pvt. Ltd.

> NCLT judgment dated 2024-03-21. Citation: TCN-2024-NCLT-01985. 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-01985
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/aashir-engineering-pvt-ltd-47c95579

## 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, to initiate the Corporate Insolvency Resolution Process (CIRP). The applicant claimed a default amount of Rs. 1,25,32,630/-, stating it arose from unpaid dues for civil infrastructure work done for the corporate debtor between October 2017 and November 2019. The corporate debtor denied the claim, citing pre-existing disputes, termination of contract, and non-payment of GST by the applicant.

## Facts

Jay Infraspace Pvt Ltd (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, against Aashir Engineering Pvt Ltd (Corporate Debtor) to initiate Corporate Insolvency Resolution Process (CIRP). The applicant, a MSME registered on 03.06.2019, claimed that the Corporate Debtor, incorporated on 18.10.2007, defaulted on a payment of Rs. 1,25,32,630/-. The applicant stated that it was engaged in civil infrastructure work and was subcontracted by the Corporate Debtor for a 4.5 MLD capacity water supply system for Zydus Cadila. The applicant supplied material and provided services from October 2017 to 15.11.2019. The total value of the work was Rs. 6,80,28,179.57/-, with the last payment made on 24.10.2019, leaving a

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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 reasoned that there was a clear dispute between the parties regarding the

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**Interpretation:** Section 9 of the IBC requires that there should be no pre-existing dispute for

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**Application:** In this case, the court found that the respondent had raised valid disputes

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## Parties

- **Judges:** Chitra Ha…; Velamur G Venkata…
- **Appellants:** Jay Infraspace…
- **Respondents:** Aashir Engineering…

## Timeline

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

## 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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