# In the matter of S. Periypalayem Commo Effluent Treatment Plant Pvt. Ltd. IBA-365-2020

> NCLT judgment dated 2022-03-30. Citation: TCN-2022-NCLT-03460. The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 30 Mar 2022
- **Citation:** TCN-2022-NCLT-03460
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/s-periypalayem-commo-effluent-treatment-plant-pvt-ltd-iba-365-2020-60626ab9

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, by Tamilnadu Water Investment Company Limited (Operational Creditor) against M/s. S. Periyapalayem Common Effluent Treatment Plant Private Limited (Corporate Debtor) for initiating Corporate Insolvency Resolution Process (CIRP). The Operational Creditor claimed a default of Rs.97,58,856/-. The Corporate Debtor argued that there were pre-existing disputes regarding the invoices raised by the Operational Creditor and deficiencies in the services rendered.

## Facts

Tamilnadu Water Investment Company Limited (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against M/s. S. Periyapalayem Common Effluent Treatment Plant Private Limited (Corporate Debtor) for a default of Rs.97,58,856/-, including principal and interest. The Operational Creditor and Corporate Debtor entered into a Project Management Agency Services (PMA) Agreement on 22.08.2012 and Operation and Supervision, Maintenance and Repair Agreements (O&M Agreements) on 23.08.2013. The Corporate Debtor requested the Operational Creditor to take over Operation and Maintenance of its Common Effluent Treatment Plant (CETP). The Operational Creditor raised invoices periodically, but the Corporate Debtor made payments with

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## Issues and analysis

### Issue 1: Whether there exists a 'dispute' between the parties in relation to the amount being claimed by the …

**Ratio:** The test for determination for the Adjudicating Authority is to see at the stage of

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**Reasoning:** The Adjudicating Authority noted that the Corporate Debtor had raised various disputes

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**Interpretation:** The Supreme Court's ruling in Mobilox Innovations clarifies that the

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**Application:** In this case, the Adjudicating Authority found that the disputes raised by the

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## Parties

- **Judges:** (Retd.) S.…; Anil Ku…
- **Appellants:** Tamilnadu Water…
- **Respondents:** M/s. S. Periyapala…; M/s. S. Periyapala…

## Timeline

- **2012-08-22 — PMA Agre…**: Project Management Agency Services (PMA) Agreement between Operational Creditor and…
- **2013-08-23 — O&M Agre…**: Operation and Supervision, Maintenance and Repair Agreement between Operational Creditor…

## 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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