# In the matter of Kushal Polysacks Private Limited C.P. (IB) No. 734-KB-2020

> NCLT judgment dated 2023-06-13. Citation: TCN-2023-NCLT-02967. Mitcon Consultancy & Engineering Services Limited filed a Company Petition under Section 9 of…

- **Court:** NCLT
- **Order date:** 13 Jun 2023
- **Citation:** TCN-2023-NCLT-02967
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/kushal-polysacks-private-limited-cp-ib-no-734-kb-2020-5966b796

## Summary

### Background

Mitcon Consultancy & Engineering Services Limited filed a Company Petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Kushal Polysacks Private Limited for initiation of Corporate Insolvency Resolution Process (CIRP). The operational creditor claimed a default amount of Rs. 1,47,500/- as principal and Rs. 10,329/- as interest for consultancy services related to a Techno-Economic Feasibility Report. The corporate debtor contended that there was a pre-existing dispute regarding the services provided and filed a civil suit against the operational creditor.

## Facts

Mitcon Consultancy & Engineering Services Limited (Operational Creditor) provided consultancy services to Kushal Polysacks Private Limited (Corporate Debtor) for preparing a Techno-Economic Feasibility Report for a proposed project. The total work order was for Rs. 5,00,000/- plus taxes. The Operational Creditor raised invoices after completing each stage of work, and the Corporate Debtor paid for the first two stages. However, an invoice of Rs. 1,47,500/- for the final report remained unpaid. The Operational Creditor sent reminders, but the Corporate Debtor claimed that the Operational Creditor had not submitted hard copies of the reports. The Corporate Debtor argued that the project report was faulty and rejected by the Ministry of Food Processing Industries

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## Issues and analysis

### Issue 1: Whether there was any pre-existing dispute before …

**Ratio:** The existence of a pre-existing dispute, even a plausible contention requiring further

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**Reasoning:** The court reasoned that the documents on record, including the correspondence between the

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**Interpretation:** The interpretation of Section 9 of the IBC, as clarified by the Supreme Court

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**Application:** In this case, the court applied the ratio from Mobilox to the facts, finding

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## Parties

- **Judges:** Smt Bidisha…; ShriBalraj…
- **Appellants:** Mitcon Consultancy…
- **Respondents:** Kushal Polysacks…

## Timeline

- **2018-10-01 — Corporate Debtor's…**: Corporate Debtor intended to venture into a new business of integrated coldchain and…
- **2018-12-21 — Meeting with Operational…**: Mr. Chandrasekhar representing the Operational Creditor met the representatives of the…

## 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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