# In the matter of J S K Hotels Private Limited CP No. (IB)- 54-9-JPR-2020

> NCLT judgment dated 2023-01-13. Citation: TCN-2023-NCLT-05042. The application was filed by Rajesh Agrawal, an Operational Creditor, seeking to initiate…

- **Court:** NCLT
- **Order date:** 13 Jan 2023
- **Citation:** TCN-2023-NCLT-05042
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/j-s-k-hotels-private-limited-cp-no-ib-54-9-jpr-2020-0c8bffa5

## Summary

### Background

The application was filed by Rajesh Agrawal, an Operational Creditor, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against JSK Hotels Private Limited, the Corporate Debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016. The Operational Creditor claimed default in payment of professional dues amounting to Rs. 8,19,527/- along with interest. The Corporate Debtor contended that there was a pre-existing dispute and that the claim was barred by limitation. The Corporate Debtor argued that the Operational Creditor had already filed a civil suit for the same amount and that some invoices were sham in nature.

## Facts

Rajesh Agrawal, an advocate, provided professional legal services to JSK Hotels Private Limited. The professional fees were to be decided mutually. Rajesh Agrawal raised invoices for the services rendered. The Corporate Debtor allegedly delayed payment of professional fees. Rajesh Agrawal issued a demand notice to JSK Hotels Private Limited under Section 8 of the Insolvency and Bankruptcy Code, 2016, demanding Rs. 8,19,527/- along with interest. JSK Hotels Private Limited neither paid the outstanding debt nor raised a dispute. Rajesh Agrawal filed an application under Section 9 of the IBC to initiate CIRP. JSK Hotels Private Limited contended that there was a pre-existing dispute, that Rajesh Agrawal had already filed a civil suit for the same amount, and that the

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## Issues and analysis

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

**Ratio:** The existence of a pre-existing dispute, as defined under Section 5(6) of the IBC, can

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**Reasoning:** The court noted that there was a pending civil suit filed by the Operational Creditor

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**Interpretation:** Section 5(6) of the IBC defines 'dispute' as including a suit or arbitration

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**Application:** The court found that the pending civil suit constituted a pre-existing dispute,

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## Parties

- **Judges:** Deep Chandr…; Prasanta Kumar…
- **Appellants:** Rajesh Ag…
- **Respondents:** JSK Hotels…

## Timeline

- **2015-02-03 — Invoices…**: Invoices raised by the Operational Creditor for services rendered from 03.02.2015 to…
- **2018-03-01 — Settlement in Delhi…**: A settlement was placed on record…

## 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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