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

> NCLT judgment dated 2023-12-07. Citation: TCN-2023-NCLT-00355. 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-00355
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/furein-construction-engineering-pvt-ltd-6575e703

## 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. The petition was based on the ground that the Corporate Debtor had committed a default for a total outstanding amount of Rs. 15,95,43,882.90, comprising a principal amount of Rs. 13,76,30,731. The Adjudicating Authority found deficiencies in the application, specifically regarding the date of default in Form V, and directed the applicant to file a revised form. The Operational Creditor and Corporate Debtor had entered into a labour contract on 21.12.2018 for work at the Corporate Debtor's project site. Disputes arose regarding

…

## Facts

M/s. Bhanadari Construction and Developers Pvt. Ltd. (Operational Creditor) sought to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. Furein Constructions Engineering Pvt. Ltd. (Corporate Debtor) due to an alleged default of Rs. 15,95,43,882.90. The Operational Creditor and Corporate Debtor entered into a labour contract on 21.12.2018. 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 contract's scope. The Corporate Debtor offered Rs. 22 crores for material management. The Operational Creditor entered into another

…

## Issues and analysis

### Issue 1: Whether the petition is maintainable under Section 9 …

**Ratio:** A petition under Section 9 of the IBC is not maintainable if there is a pre-existing

…

**Reasoning:** The Tribunal found that there were disputes between the parties existing much before the

…

**Interpretation:** Section 9 of the IBC requires that there should be no pre-existing dispute for

…

**Application:** The Tribunal applied the ratio to the facts, noting the correspondences, legal

…

## Parties

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

## Timeline

- **2018-12-21 — Labour Co…**: Operational Creditor and Corporate…
- **2019-04-23 — Second Labour…**: Operational Creditor entered into another…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/furein-construction-engineering-pvt-ltd-6575e703