# In the matter of Furein Construction Engineering Pvt. Ltd.

> NCLT judgment dated 2023-12-07. Citation: TCN-2023-NCLT-00364. M/s. Bhanadari Construction and Developers Pvt. Ltd. filed a petition under Section 9 of the…

- **Court:** NCLT
- **Order date:** 7 Dec 2023
- **Citation:** TCN-2023-NCLT-00364
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/furein-construction-engineering-pvt-ltd-13f58031

## Summary

### Background

M/s. Bhanadari Construction and Developers Pvt. Ltd. filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process against M/s. Furein Constructions Engineering Pvt. Ltd., alleging a default of Rs. 15,95,43,882.90. The Operational Creditor (Bhanadari) and Corporate Debtor (Furein) entered into a labour contract in 2018. Disputes arose regarding material management, payments, and the scope of work. The Operational Creditor issued demand notices, and the Corporate Debtor responded with disputes and counterclaims.

## Facts

M/s. Bhanadari Construction and Developers Pvt. Ltd. (Operational Creditor) filed a petition against M/s. Furein Constructions Engineering Pvt. Ltd. (Corporate Debtor) under Section 9 of the IBC, claiming a default of Rs. 15,95,43,882.90. The parties entered into a labour contract on 21.12.2018 for work at the Delta Hosur Factory. The Operational Creditor was to provide workforce, while the Corporate Debtor was responsible for material management. Disputes arose when the Corporate Debtor allegedly failed to manage material arrangements, leading the Operational Creditor to undertake material management beyond the original scope. A second labour agreement was entered on 23.04.2019, increasing the scope of work. The Corporate Debtor called for a meeting on 04.07.2019 and

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## Issues and analysis

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

**Ratio:** The existence of a pre-existing dispute, if established, renders a petition under Section

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**Reasoning:** The Adjudicating Authority examined the correspondences, legal notices, and replies

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**Interpretation:** The interpretation of 'dispute' under the IBC encompasses any disagreement or

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**Application:** The Adjudicating Authority applied the ratio to the facts by considering the

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## Parties

- **Judges:** T. Krishn…; Manoj Kumar…
- **Appellants:** M/s.Bhanadari…
- **Respondents:** M/s. Furein…

## Timeline

- **2018-12-21 — First Labour…**: Operational Creditor and Corporate…
- **2019-04-23 — Second Labour…**: Operational Creditor and Corporate Debtor…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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