# In the matter of NBCC (India) Limited

> NCLT judgment dated 2023-10-17. Citation: TCN-2023-NCLT-01160. Chemi Tech Engineers Pvt. Ltd. filed an application under Section 9 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 17 Oct 2023
- **Citation:** TCN-2023-NCLT-01160
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/nbcc-india-limited-3157b15b

## Summary

### Background

Chemi Tech Engineers Pvt. Ltd. filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against NBCC (India) Ltd. for defaulting on a payment of Rs. 19,36,89,351/-. The applicant claimed that NBCC had awarded a work order for construction of external services in 2009, and despite completing the work between 2010 and 2014, NBCC failed to release the full payment. The applicant had also filed a suit for recovery of outstanding bills in the Delhi High Court in 2016.

## Facts

In 2009, NBCC (India) Ltd. awarded a work order to Chemi Tech Engineers Pvt. Ltd. for construction of external services. Chemi Tech carried out the work between 2010 and August 2014. The applicant submitted the 23rd RA bill on 24.09.2014, which was processed, and TDS was deducted, but the net amount was not released. The 24th RA bill was submitted on 25.11.2014, and the 25th RA bill on 18.11.2015, but payments were not released. In 2016, Chemi Tech filed a suit for recovery of outstanding bills in the Delhi High Court. On 28.06.2021, Chemi Tech issued a statutory notice of demand under Section 8 of the IBC to NBCC. On 15.07.2021, NBCC replied, raising a dispute. NBCC claimed that Chemi Tech had not completed the work and that there were defects in the work. NBCC also

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## Issues and analysis

### Issue 1: Whether there is any discernible pre-existing dispute surrounding the debt claimed by the Applicant …

**Ratio:** The Hon'ble Supreme Court in Mobilox Innovations Private Limited Vs Kirusa Software

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**Reasoning:** The court found that the Corporate Debtor had disputed the existence of the operational

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**Interpretation:** The existence of a pre-existing dispute, even if plausible, is sufficient to

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**Application:** In this case, the Corporate Debtor had raised a plausible contention about the

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## Parties

- **Judges:** MANNI SANKARIAH…; BINOD KUMAR…
- **Appellants:** Chemi Tech…
- **Respondents:** NBCC (India)…; NBCC (India…

## Timeline

- **2009-12-30 — Work Order…**: NBCC awarded work order to Chemi Tech…
- **2010-01-01 — Work Exec…**: Chemi Tech carried out the work…

## 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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