# In the matter of Heritage Motels Private Limited

> NCLT judgment dated 2023-12-22. Citation: TCN-2023-NCLT-00029. M/s KV Interiors & Designers, an operational creditor, filed an application under Section 9 of…

- **Court:** NCLT
- **Order date:** 22 Dec 2023
- **Citation:** TCN-2023-NCLT-00029
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/heritage-motels-private-limited-b60316f7

## Summary

### Background

M/s KV Interiors & Designers, an operational creditor, 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, due to non-payment of operational dues amounting to Rs. 1,36,62,992/- along with interest. The corporate debtor disputed the claim, citing substandard quality of work and deviations from agreed timelines. The Adjudicating Authority examined the application, replies, rejoinders, and written submissions from both parties.

## Facts

M/s KV Interiors & Designers (Operational Creditor/Applicant) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against M/s Heritage Motels Private Limited (Corporate Debtor/Respondent). The operational debt claimed was Rs. 1,36,62,992/- plus interest, totaling Rs. 1,40,19,244.354/-. The Corporate Debtor engaged the Operational Creditor for providing and fixing furniture, POP ceiling, wall & floor tiles installation, paint, and metal doors in Hyatt Place, Jaipur. The Corporate Debtor claimed that the work performed was of inferior quality and substandard, raising concerns via emails prior to the demand notice dated 18.10.2022. The Operational Creditor asserted

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## Issues and analysis

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

**Ratio:** The existence of a pre-existing dispute, as defined under Section 8(2)(a) of the IBC,

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**Reasoning:** The Adjudicating Authority considered the emails exchanged between the parties prior to

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**Interpretation:** Section 8(2)(a) of the IBC requires the corporate debtor to bring to the notice

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**Application:** In this case, the emails exchanged between the Corporate Debtor and the

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## Parties

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

## Timeline

- **2006-03-17 — Incorporation of…**: M/s Heritage Motels Private Limited was…
- **2018-10-03 — Work Order/Purchase…**: Issuance of work order/purchase order with a…

## 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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