# In the matter of Dilip Buildcon Limited

> NCLT judgment dated 2023-11-02. Citation: TCN-2023-NCLT-00855. Steel Scaff (India) Private Limited, the applicant/operational creditor, filed an application…

- **Court:** NCLT
- **Order date:** 2 Nov 2023
- **Citation:** TCN-2023-NCLT-00855
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/dilip-buildcon-limited-033b2ff2

## Summary

### Background

Steel Scaff (India) Private Limited, the applicant/operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Dilip Buildcon Limited, the respondent/corporate debtor. The claim was based on unpaid invoices for the supply of equipment, with a total default amount of Rs. 2,62,32,195/-. The respondent argued that there was a pre-existing dispute regarding the quality of materials supplied and collusion between the applicant and one of the respondent's employees.

## Facts

Steel Scaff (India) Private Limited (Applicant) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Dilip Buildcon Limited (Respondent). The applicant claimed a default of Rs. 2,62,32,195/- based on unpaid invoices for the supply of scaffolding, shuttering, and propping equipment for various projects of the respondent. The respondent argued that there was a pre-existing dispute regarding the quality of the materials supplied, alleging that the applicant provided substandard materials. The respondent also claimed that the applicant colluded with one of its employees, Shri Eknath Lade, to supply inferior quality materials. The respondent issued purchase orders to the

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## Issues and analysis

### Issue 1: Whether there exists a pre-existing dispute between the applicant and the respondent prior to the …

**Ratio:** A pre-existing dispute, if proven, can prevent the initiation of CIRP under Section 9 of

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**Reasoning:** The court reasoned that the respondent had issued a legal notice dated 07.05.2018 to the

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**Interpretation:** The interpretation of 'pre-existing dispute' is crucial in determining the

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**Application:** In this case, the respondent's legal notice of 07.05.2018, which predates the

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## Parties

- **Judges:** P. Moha…; KAUSHALENDRA…
- **Appellants:** Steel Scaff…
- **Respondents:** Dilip Buildcon…
- **Advocates:** Karanjot Singh…; Navin P…; +1 more

## Timeline

- **2017-01-01 — Respondent Approached…**: The respondent approached the applicant for the supply of equipment for scaffolding,…
- **2018-01-09 — Purchase Order…**: The respondent issued purchase orders to the applicant on 09.01.2018, 24.02.2018,…

## 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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