# In the matter of Heritage Motels Private Limited

> NCLT judgment dated 2023-12-22. Citation: TCN-2023-NCLT-00023. M/s KV Interiors & Designers, an operational creditor/applicant, filed an application under…

- **Court:** NCLT
- **Order date:** 22 Dec 2023
- **Citation:** TCN-2023-NCLT-00023
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/heritage-motels-private-limited-a57ce3b3

## Summary

### Background

M/s KV Interiors & Designers, an operational creditor/applicant, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s Heritage Motels Private Limited, the corporate debtor/respondent, due to non-payment of operational dues amounting to Rs. 1,36,62,992/- along with interest. The corporate debtor disputed the quality of work performed by the applicant, citing inferior and substandard quality, and raised concerns about timelines. The applicant claimed that the respondent is a defaulter and that the services provided were of standard quality.

## Facts

M/s KV Interiors & Designers (Operational Creditor) filed an application to initiate Corporate Insolvency Resolution Process (CIRP) against M/s Heritage Motels Private Limited (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016. The Operational Creditor claimed that the Corporate Debtor defaulted on operational dues amounting to Rs. 1,36,62,992/- plus interest. The Corporate Debtor engaged the Operational Creditor for providing and fixing furniture, POP ceiling, wall & floor tiles installation, paint and metal doors in the rooms in Hyatt Place, Jaipur. The Operational Creditor raised invoices for the work done, which the Corporate Debtor acknowledged. The Operational Creditor sent a Demand Notice dated 18.10.2022 for the payment of

…

## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor under Section 9 of the Insolvency and …

**Ratio:** Section 9(5)(ii)(d) of the IBC mandates the Adjudicating Authority to reject an

…

**Reasoning:** The Adjudicating Authority considered the email communications between the parties prior

…

**Interpretation:** The existence of a genuine and plausible dispute regarding the debt, even if

…

**Application:** In this case, the Corporate Debtor had raised concerns about the quality of

…

## Parties

- **Judges:** Deep Chandr…; RAJEEV ME…
- **Appellants:** M/S K V INTERIORS…
- **Respondents:** M/S HERITAGE…

## Timeline

- **2016-01-01 — Enactment…**: The Insolvency and…
- **2022-05-10 — Debt Fel…**: Date from which debt…

## 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/heritage-motels-private-limited-a57ce3b3