# In the matter of Sadbhav Infrastructure Project Limited CP(IB)-79-AHM-2022

> NCLT judgment dated 2023-05-19. Citation: TCN-2023-NCLT-03241. Mantra Corporation, an operational creditor, filed a petition under Section 9 of the Insolvency…

- **Court:** NCLT
- **Order date:** 19 May 2023
- **Citation:** TCN-2023-NCLT-03241
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sadbhav-infrastructure-project-limited-cpib-79-ahm-2022-7138cee4

## Summary

### Background

Mantra Corporation, an operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Sadbhav Infrastructure Project Limited, the corporate debtor, due to a default amount of Rs 1,35,68,193/-, which included an invoice amount of Rs 95,66,243/- and interest of Rs 40,01,949/-. The operational creditor had provided services for under-construction activities to the corporate debtor based on multiple work orders issued in 2019. The corporate debtor made partial payments but failed to clear the outstanding dues despite repeated requests and reminders. The corporate debtor also raised concerns about the quality of work performed by the operational creditor, leading to

…

## Facts

Mantra Corporation, acting as an operational creditor, provided services to Sadbhav Infrastructure Project Limited, the corporate debtor, for under-construction activities based on work orders issued in 2019. The total default amount claimed by Mantra Corporation was Rs 1,35,68,193/-, including Rs 95,66,243/- as the principal invoice amount and Rs 40,01,949/- as interest. Despite partial payments, Sadbhav Infrastructure Project Limited failed to clear the outstanding dues, prompting Mantra Corporation to issue a demand notice on 24.01.2022, which was served on 27.01.2022. Sadbhav Infrastructure Project Limited did not respond to the demand notice. Sadbhav Infrastructure Project Limited raised concerns about the quality of work performed by Mantra Corporation, claiming

…

## Issues and analysis

### Issue 1: Whether the application under Section 9 of the Insolvency and Bankruptcy Code, 2016 is maintainable …

**Ratio:** A pre-existing dispute regarding the quality of services provided by the operational

…

**Reasoning:** The NCLT observed that the corporate debtor had raised concerns and disputes regarding

…

**Interpretation:** Section 9 of the IBC requires that there should be no pre-existing dispute

…

**Application:** In this case, the NCLT found that the corporate debtor had raised concerns

…

## Parties

- **Judges:** Sh. Ashok Kumar…; KAUSHALENDRA…
- **Appellants:** Mantra Corporation…
- **Respondents:** Sadbhav Infrastruc…; Sadbhav Infrastruc…

## Timeline

- **2019-10-07 — Work Order…**: Corporate debtor issued work order no.…
- **2019-11-20 — Work Order…**: Corporate debtor issued work order no.…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(21) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sadbhav-infrastructure-project-limited-cpib-79-ahm-2022-7138cee4