# In the matter of Neo Structo Construction Pvt. Ltd.

> NCLT judgment dated 2024-01-11. Citation: TCN-2024-NCLT-03190. The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 11 Jan 2024
- **Citation:** TCN-2024-NCLT-03190
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/neo-structo-construction-pvt-ltd-561bc6b5

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, by Jayaraj Neon Engineering & Construction Pvt. Ltd. against Neo Structo Construction Pvt. Ltd. The applicant sought the restoration of CP(IB) No. 68 of 2022, which was previously dismissed. The application for restoration was filed under Regulation 44 of the National Company Law Tribunal Rules, 2016. The initial dismissal occurred because the applicant appeared uninterested in pursuing the matter, with no categorical submission made regarding settlement and no argument presented. The corporate debtor did not press the matter for hearing.

## Facts

Jayaraj Neon Engineering & Construction Pvt. Ltd. (the Applicant/Operational Creditor) filed CP(IB) No. 68 of 2022 under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Neo Structo Construction Pvt. Ltd. (the Corporate Debtor). The application was initially dismissed on 09.01.2023 due to the applicant's lack of diligence, including failure to file Vakalatnama, repeated requests for adjournments, and absence of clear submissions regarding settlement. An arbitral award was pending before the High Court, indicating a pre-existing dispute between the parties. The applicant then filed an application for restoration of the dismissed CP(IB) No. 68 of 2022. The Corporate Debtor objected to the restoration, citing unreasonable and implausible reasons,

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## Issues and analysis

### Issue 1: Whether the application for restoration of CP(IB) No. 68 of 2022 should be allowed, considering the …

**Ratio:** An applicant must demonstrate due diligence and a genuine interest in pursuing their case

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**Reasoning:** The court reasoned that the applicant had previously failed to demonstrate diligence by

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**Interpretation:** This issue involves the interpretation of procedural rules and principles

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**Application:** In this specific case, the applicant's previous lack of diligence and the

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## Parties

- **Judges:** Mrs.ChitraH…; Dr.Velamur G…
- **Appellants:** Jayarajneon…
- **Respondents:** Neo Structo…

## Timeline

- **2022-01-01 — CP(IB) No. 68 of 2022…**: Jayaraj Neon Engineering & Construction Pvt. Ltd. filed CP(IB) No. 68 of 2022 under…
- **2022-04-16 — Respondent'…**: Neo Structo Construction Pvt. Ltd. filed a reply objecting to the invoice/claim on 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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