# In the matter of Pasari Multiprojects Private Limited

> NCLT judgment dated 2023-08-28. Citation: TCN-2023-NCLT-01889. Innovators Facade Solutions Private Limited filed a Company Petition under Section 9 of the…

- **Court:** NCLT
- **Order date:** 28 Aug 2023
- **Citation:** TCN-2023-NCLT-01889
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/pasari-multiprojects-private-limited-e5c72035

## Summary

### Background

Innovators Facade Solutions Private Limited filed a Company Petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Pasari Multiprojects Private Limited, claiming default of Rs. 4,75,70,047. The Operational Creditor and Corporate Debtor entered into an agreement for unitized facade system works for the Corporate Debtor's project. The Operational Creditor started work in July 2015 and raised several invoices. The Corporate Debtor failed to discharge the dues, leading to the issuance of a demand notice by the Operational Creditor. The Corporate Debtor contended that there were pre-existing disputes and that the application was not maintainable.

## Facts

Innovators Facade Solutions Private Limited (Operational Creditor) filed a petition against Pasari Multiprojects Private Limited (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, claiming a default of Rs. 4,75,70,047. The Operational Creditor and Corporate Debtor entered into an agreement for unitized facade system works for the Corporate Debtor's project named Biowonder. A Letter of Intent (LOI) dated 09 July, 2015, outlined the terms, including a total project value of Rs. 10,68,79,250. The Operational Creditor commenced work in July 2015 and raised several invoices. The Corporate Debtor made partial payments totaling Rs. 5,51,56,183, leaving an outstanding balance. The Operational Creditor issued a demand notice on 12 February, 2019,

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## Issues and analysis

### Issue 1: Whether a pre-existing dispute existed between the parties before the service of the demand notice …

**Ratio:** The existence of a pre-existing dispute, as evidenced by a pending suit or arbitration

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**Reasoning:** The court reasoned that the Corporate Debtor filed a civil suit (T.S. No. 371 of 2019) on

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**Interpretation:** The court interpreted the legal precedents to mean that if a dispute is already

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**Application:** In this case, the court applied the ratio by noting that the civil suit filed

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## Parties

- **Judges:** BIDISHA BA…; Balraj…
- **Appellants:** Innovators Facade…
- **Respondents:** Pasari Multi…
- **Advocates:** Joy S…; Shaunak…; +7 more

## Timeline

- **2015-07-09 — Letter of Inte…**: Corporate Debtor issued Letter of Intent to…
- **2015-07-01 — Work Commen…**: Operational Creditor commenced…

## 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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