# In the matter of Heavy Engineering Corporation Private Limited C.P. (IB) No. 27-KB-2021

> NCLT judgment dated 2022-01-31. Citation: TCN-2022-NCLT-04320. G4S Secure Solutions (India) Private Limited filed a Company Petition under Section 9 of the…

- **Court:** NCLT
- **Order date:** 31 Jan 2022
- **Citation:** TCN-2022-NCLT-04320
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/heavy-engineering-corporation-private-limited-cp-ib-no-27-kb-2021-9eb6dd19

## Summary

### Background

G4S Secure Solutions (India) Private Limited filed a Company Petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Heavy Engineering Corporation Private Limited, seeking to initiate Corporate Insolvency Resolution Process (CIRP) due to unpaid operational debt. The operational debt arose from a contract where G4S provided security services to Heavy Engineering Corporation. G4S claimed that Heavy Engineering Corporation failed to pay Rs. 2,50,20,319/- along with interest. Heavy Engineering Corporation contested the petition, arguing that there were pre-existing disputes regarding the quality of services provided by G4S and that the amount claimed did not meet the threshold for initiating CIRP.

## Facts

G4S Secure Solutions (India) Private Limited ('Operational Creditor') provided security services to Heavy Engineering Corporation Private Limited ('Corporate Debtor') based on a tender issued in August 2015. The Operational Creditor submitted a tender application with an earnest money deposit (EMD) of Rs. 11,50,000, which was accepted on September 28, 2016. An agreement was entered between the parties. The Operational Creditor raised numerous bills for the period from December 2018 to May 2019. The Corporate Debtor allegedly failed to make timely and complete payments. The Operational Creditor sent a demand letter on October 9, 2019, and several mails in October, November, and December 2019, seeking clearance of outstanding dues. The Corporate Debtor, in a letter dated

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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 Hon'ble Supreme Court has established the principle that in an application under

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**Reasoning:** The court reasoned that the correspondences between the Corporate Debtor and 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 court applied the ratio by examining the communications

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## Parties

- **Judges:** Rajasekha…; Balraj…
- **Appellants:** G4S SECURE…
- **Respondents:** Heavy Engineering…

## Timeline

- **2015-08-18 — Tender N…**: Corporate Debtor issued two…
- **2016-04-05 — Tender N…**: Corporate Debtor issued two…

## 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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