# In the matter of Fruitful Buildcon Pvt. Ltd.

> NCLT judgment dated 2024-07-16. Citation: TCN-2024-NCLT-00996. The case involves an application filed by Mr. Shakir, Proprietor of Zaara Enterprises…

- **Court:** NCLT
- **Order date:** 16 Jul 2024
- **Citation:** TCN-2024-NCLT-00996
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/fruitful-buildcon-pvt-ltd-9b34deb5

## Summary

### Background

The case involves an application filed by Mr. Shakir, Proprietor of Zaara Enterprises (Operational Creditor/Applicant), seeking to initiate Corporate Insolvency Resolution Process (CIRP) against M/s Fruitful Buildcon Private Limited (Corporate Debtor/Respondent) under Section 9 of the Insolvency and Bankruptcy Code, 2016. The operational debt claimed by the applicant amounts to Rs. 1,04,46,084/-. The Corporate Debtor is a private company incorporated under the Companies Act, 1956 in 2001. The Corporate Debtor had issued a work order to the Applicant for work to be executed at Hilton Hotel, Jaipur.

## Facts

Mr. Shakir, proprietor of Zaara Enterprises, filed an application to initiate CIRP against M/s Fruitful Buildcon Private Limited, claiming an operational debt of Rs. 1,04,46,084/-. The debt arose from a work order issued by the Corporate Debtor for work at Hilton Hotel, Jaipur. The Applicant issued a demand notice under Section 8 of the IBC on 02.07.2022. The Corporate Debtor argued that there was a pre-existing dispute regarding the debt. The Corporate Debtor had issued a work order on 01.08.2021. The work was completed in March 2022. The Applicant sent emails requesting payment, and the Respondent replied, disputing the amount. The Applicant stated the total debt due was Rs. 1,64,51,948/-, while the Respondent claimed the value of the work order was Rs. 70 lakhs,

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## Issues and analysis

### Issue 1: Whether there is a pre-existing dispute with respect to the amount claimed to be due in the …

**Ratio:** The Hon'ble Supreme Court in 'Transmission Corporation of Andhra Pradesh Limited' V/s.

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**Reasoning:** The Adjudicating Authority perused the email communications between the parties and found

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**Interpretation:** The existence of a pre-existing dispute, as defined by the Supreme Court, is a

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**Application:** In this case, the email communications between the parties showed that the

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## Parties

- **Judges:** Deep Chandr…; RAJEEV ME…
- **Appellants:** Shak…
- **Respondents:** M/S FRUITFUL…

## Timeline

- **2021-08-01 — Work Order…**: The Corporate Debtor issued a work order to the Operational Creditor for work to be…
- **2022-03-01 — Work Comp…**: The work was completed…

## 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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