# In the matter of Shrikant Studios Private Limited C.P. (IB)- 1402 (MB)-2019

> NCLT judgment dated 2023-02-03. Citation: TCN-2023-NCLT-04780. Alumilite Architectural Ltd. filed a Company Petition under Section 9 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 3 Feb 2023
- **Citation:** TCN-2023-NCLT-04780
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/shrikant-studios-private-limited-cp-ib-1402-mb-2019-3519f9fa

## Summary

### Background

Alumilite Architectural Ltd. filed a Company Petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Shrikant Studios Private Limited, alleging default in payment for work done. The Operational Creditor claimed a principal sum of Rs. 40,69,562 along with interest, totaling Rs. 73,19,935. The Corporate Debtor argued that a pre-existing dispute existed, citing a commercial suit filed by the Operational Creditor in the Bombay High Court and a counterclaim by the Corporate Debtor. The Corporate Debtor also claimed delays and irregularities in the work executed by the Operational Creditor, leading to termination of the work order and claims for liquidated damages.

## Facts

Alumilite Architectural Ltd. (Operational Creditor) filed a petition against Shrikant Studios Private Limited (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, claiming a default of Rs. 73,19,935. The debt arose from a work order issued by the Corporate Debtor for manufacturing aluminum sections, doors, windows, etc., for Rs. 3,05,49,327. The Operational Creditor received part payments of Rs. 2,70,25,195. A demand notice was issued on 22.10.2018. The Corporate Debtor claimed a pre-existing dispute, citing a commercial suit filed by the Operational Creditor in the Bombay High Court and a counterclaim for Rs. 54,87,333. The Corporate Debtor also alleged delays and irregularities in the work, leading to termination of the work order on

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## Issues and analysis

### Issue 1: Whether a pre-existing dispute exists between the Operational Creditor and the Corporate Debtor …

**Ratio:** The existence of a pre-existing dispute, as interpreted by the Supreme Court in 'Mobilox

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**Reasoning:** The NCLT considered the ongoing commercial suit in the Bombay High Court, the Corporate

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**Interpretation:** The Supreme Court's interpretation of 'existence of a dispute' emphasizes that

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**Application:** In this case, the NCLT found that the Corporate Debtor had raised a plausible

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## Parties

- **Judges:** P.N. Des…; Shyam Babu…
- **Appellants:** Alumilite…
- **Respondents:** Shrikant Studios…

## Timeline

- **2013-04-25 — Work Order…**: Corporate Debtor issued a work order to the Operational Creditor for manufacturing…
- **2015-08-26 — Work Order Ter…**: Corporate Debtor terminated the work order due to the Operational Creditor's failure to…

## 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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