# In the matter of Shapoorji Pallonji and Company Pvt. Ltd. CP (IB) No.716-MB-IV-2021

> NCLT judgment dated 2023-02-24. Citation: TCN-2023-NCLT-04469. Satec Envir Engineering (India) Private Limited, the Operational Creditor, filed a Company…

- **Court:** NCLT
- **Order date:** 24 Feb 2023
- **Citation:** TCN-2023-NCLT-04469
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/shapoorji-pallonji-and-company-pvt-ltd-cp-ib-no716-mb-iv-2021-4bb3bb9e

## Summary

### Background

Satec Envir Engineering (India) Private Limited, the Operational Creditor, filed a Company Petition under Section 9 of the Insolvency & Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Shapoorji Pallonji & Company Private Limited, the Corporate Debtor. The Operational Creditor claimed a sum of Rs.3,01,99,983/- in default, including principal and interest under the MSME Act. The default was stated to have occurred on different dates as per respective invoices, with 24th August, 2019, considered as the date of default.

## Facts

Satec Envir Engineering (India) Private Limited (Operational Creditor) filed a petition against Shapoorji Pallonji & Company Private Limited (Corporate Debtor) under Section 9 of the Insolvency & Bankruptcy Code, 2016, claiming a default of Rs.3,01,99,983/-. The claim included principal and interest under the MSME Act, with the default date considered as August 24, 2019. The Operational Creditor was awarded a contract for structural steel works for a project in Niamey, Niger, and issued invoices between May and August 2019. A demand notice was issued on February 1, 2021, which the Corporate Debtor denied on February 22, 2021, citing issues with material quality, design delays, and a counter claim of USD 1,94,239.27. Email communications showed discussions on

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## Issues and analysis

### Issue 1: Whether there was a pre-existing dispute in relation to the amount of debt claimed at the time of …

**Ratio:** The Code is not meant for the recovery of debts due, and it excludes debts that fall

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**Reasoning:** The Tribunal considered the email communications between the parties, including

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

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**Application:** In this case, the Corporate Debtor raised issues regarding the quality of

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## Parties

- **Judges:** Prabhat…; KISHORE VEMULAPALL…
- **Appellants:** Satec Envir…
- **Respondents:** Shapoorji…
- **Advocates:** Sameer P…; Krina G…; +3 more

## Timeline

- **2018-11-06 — Purchase Orde…**: Applicant/ Operational Creditor was issued a purchase order dated 6th November, 2018 for…
- **2019-05-01 — Tax Invoices…**: The Applicant/ Operational Creditor issued various Tax Invoices from the period starting…

## 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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