# In the matter of Central Coalfields Limited

> NCLT judgment dated 2024-04-26. Citation: TCN-2024-NCLT-01562. G-Tech Construction and Fabricators, an operational creditor, filed an application under…

- **Court:** NCLT
- **Order date:** 26 Apr 2024
- **Citation:** TCN-2024-NCLT-01562
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/central-coalfields-limited-1d634254

## Summary

### Background

G-Tech Construction and Fabricators, an operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Central Coalfields Limited, the corporate debtor. The application pertains to two work orders issued to G-Tech Construction and Fabricators for work at Site-1 and Site-2. The operational creditor claims that the corporate debtor defaulted on payments for the work done under these work orders.

## Facts

G-Tech Construction and Fabricators, an MSME partnership firm, was awarded two work orders by Central Coalfields Limited (CCL). The first work order, for Site-1 dated 28.12.2017, involved repair and maintenance work. The second work order, for Site-2 dated 24.01.2018, was for the construction of classrooms. G-Tech completed both jobs, and CCL issued completion certificates. G-Tech claimed CCL unequivocally admitted that the work was completed within the contractual completion date and that the total work-done amount was Rs. 3,28,38,486 for Site-1. CCL also admitted that the total work-done amount for Site-2 was Rs. 1,02,81,442.71. G-Tech alleged that CCL failed to make timely payments despite repeated requests. G-Tech sent a demand notice under Section 8 of the IBC on

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## Issues and analysis

### Issue 1: Whether the disputes raised by the …

**Ratio:** The existence of a pre-existing dispute is a valid ground for rejecting an application

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**Reasoning:** The court noted that the Corporate Debtor (CCL) had raised disputes regarding the quality

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**Interpretation:** The existence of a genuine dispute regarding the debt prior to the issuance of

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**Application:** In this case, the court found that the Corporate Debtor had raised disputes

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## Parties

- **Judges:** BIDISHA BA…; Balraj…
- **Appellants:** G-Tech Constructio…
- **Respondents:** Central Coalfields…

## Timeline

- **2017-12-28 — Work Order fo…**: A Work Order for Site-1 was awarded to the…
- **2018-01-24 — Work Order fo…**: A Work Order for Site-2 was awarded to the…

## 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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