# In the matter of Dangyach Hotels Private Limited CP No. (IB)- 53-9-JPR-2020

> NCLT judgment dated 2023-02-13. Citation: TCN-2023-NCLT-04610. Rajesh Agrawal, an Operational Creditor/Applicant, filed an application under Section 9 of the…

- **Court:** NCLT
- **Order date:** 13 Feb 2023
- **Citation:** TCN-2023-NCLT-04610
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/dangyach-hotels-private-limited-cp-no-ib-53-9-jpr-2020-78aa031f

## Summary

### Background

Rajesh Agrawal, an Operational Creditor/Applicant, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Dangayach Hotels Private Limited, the Corporate Debtor/Respondent. The applicant claimed default in payment of professional dues amounting to Rs. 3,06,058/- along with interest. The respondent contended that there was a pre-existing dispute and that the application was barred by limitation.

## Facts

Rajesh Agrawal, an advocate, provided professional legal services to Dangayach Hotels Private Limited. The professional fees were to be decided mutually. The Operational Creditor raised invoices for the professional service rendered. The Corporate Debtor delayed professional fees and failed to clear seventeen unpaid invoices from 03.02.2015 to 20.11.2017. The Applicant sent reminders for pending professional fees. The Applicant issued a Demand Notice dated 12.11.2019 demanding Rs. 3,06,058/- along with interest. The Respondent contended that the Applicant failed to fulfill his part of duties, including failure to provide appropriate professional service and pending civil dispute. The Respondent approached the Applicant for representing it in a civil suit filed by one

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## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor under Section 9 of the Insolvency and …

**Ratio:** The Hon'ble Supreme Court, in the case of S. S. Engineers (Supra), has stated that on a

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**Reasoning:** The Adjudicating Authority found that there was a pre-existing dispute between the

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**Interpretation:** Section 9 of the IBC allows an operational creditor to initiate CIRP if there

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**Application:** In this case, the existence of a pre-existing dispute and the time-barred

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## Parties

- **Judges:** Deep Chandr…; Prasanta Kumar…
- **Appellants:** Rajesh Ag…
- **Respondents:** DANGAYACH HOTELS…

## Timeline

- **2015-02-03 — Invoices…**: Invoices raised by the Operational Creditor for professional services rendered to the…
- **2017-11-20 — Invoices…**: Last date of invoices raised by the Operational Creditor for professional services…

## 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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