# In the matter of B.P. Gangar Construction Private Limited

> NCLT judgment dated 2024-03-06. Citation: TCN-2024-NCLT-02178. Jaatvedas Construction and Contractors LLP filed a petition under Section 9 of the Insolvency…

- **Court:** NCLT
- **Order date:** 6 Mar 2024
- **Citation:** TCN-2024-NCLT-02178
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/bp-gangar-construction-private-limited-583a2176

## Summary

### Background

Jaatvedas Construction and Contractors LLP filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against B.P. Gangar Construction Private Limited, alleging a default of Rs. 1,74,59,185. The Corporate Debtor argued that there were pre-existing disputes regarding the quality of services provided by the Operational Creditor and that the claim amount was below the threshold limit. The Operational Creditor contended that the Corporate Debtor had admitted its liability and that the disputes were raised as an afterthought to avoid payment.

## Facts

Jaatvedas Construction and Contractors LLP (Operational Creditor) filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against B.P. Gangar Construction Private Limited (Corporate Debtor), alleging a default of Rs. 1,74,59,185. The Operational Creditor and Corporate Debtor entered into an understanding in January 2021, where the Operational Creditor was engaged to provide construction services for a project named 'Skye31'. From March 2021 to December 2021, the Operational Creditor raised four invoices aggregating to Rs. 2,82,88,654. The Corporate Debtor made part payments until June 2021 but failed to pay the outstanding debt. The Operational Creditor sent an email on 20.12.2021

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## Issues and analysis

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

**Ratio:** The existence of a pre-existing dispute is a bar to the initiation of Corporate

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**Reasoning:** The court analyzed the email communications between the parties and found that there was

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**Interpretation:** The court interpreted the email communications and other evidence to determine

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**Application:** The court applied the ratio to the facts of the case and found that there was a

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## Parties

- **Judges:** LAKSHMI G…; Charanjeet Singh…
- **Appellants:** Jaatvedas…
- **Respondents:** B.P. Gangar…

## Timeline

- **2020-10-12 — Letter of…**: Operational Creditor and Corporate Debtor entered into a Letter of Intent whereby the…
- **2021-01-01 — Commencement…**: Construction work…

## 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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