# In the matter of Sinnar Thermal Power Private Limited Company Petition No. (IB)-2561-(ND)-2019

> NCLT judgment dated 2022-09-19. Citation: TCN-2022-NCLT-01028. The case pertains to a petition filed by M/s. Shapoorji Pallonji & Co. Private Limited…

- **Court:** NCLT
- **Order date:** 19 Sept 2022
- **Citation:** TCN-2022-NCLT-01028
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sinnar-thermal-power-private-limited-company-petition-no-ib-2561-nd-2019-84b7c3e7

## Summary

### Background

The case pertains to a petition filed by M/s. Shapoorji Pallonji & Co. Private Limited (Operational Creditor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. Sinnar Thermal Power Limited (Corporate Debtor). The Operational Creditor and Corporate Debtor entered into a contract for civil and structural work for a power project. Disputes arose regarding payments, leading to the Operational Creditor issuing a demand notice under Section 8 of the IBC. The Corporate Debtor claimed pre-existing disputes and deficiencies in service.

## Facts

M/s. Shapoorji Pallonji & Co. Private Limited (Operational Creditor) filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. Sinnar Thermal Power Limited (Corporate Debtor). The two parties had entered into a contract dated 28.05.2010 for civil and structural work for a power project. The total contract value was Rs. 224,13,18,811.04/- inclusive of GST. The Operational Creditor completed the awarded work on 31.03.2018. The Operational Creditor submitted a final bill on 25.04.2018. The Operational Creditor sent a demand notice under Section 8 of the IBC on 16.08.2019, claiming Rs. 62,19,63,338/-. The Corporate Debtor replied on 29.08.2019, raising disputes for the first

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## Issues and analysis

### Issue 1: Whether there is existence of a dispute between the parties or the record of the pendency of a suit …

**Ratio:** The existence of a 'dispute' must be 'pre-existing,' i.e., it must exist before the

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**Reasoning:** The Corporate Debtor had not raised any substantial objection or dispute pertaining to

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**Interpretation:** The Adjudicating Authority must determine if a dispute existed before the

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**Application:** In this case, the Corporate Debtor issued a work completion certificate dated

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## Parties

- **Judges:** DHARMINDER…; BINOD KUMAR…
- **Appellants:** M/s. Shapoorji…
- **Respondents:** M/s Sinnar…

## Timeline

- **2010-05-28 — Contract Ag…**: Operational Creditor and Corporate Debtor entered into a contract for civil and…
- **2018-03-31 — Work Comp…**: Operational Creditor…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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