# In the matter of Suhem Facades Private Limited CP (IB) No.365-MB-IV-2021

> NCLT judgment dated 2023-04-19. Citation: TCN-2023-NCLT-03722. VISHWA GREEN REALTORS PRIVATE LIMITED, the Operational Creditor, filed a Company Petition under…

- **Court:** NCLT
- **Order date:** 19 Apr 2023
- **Citation:** TCN-2023-NCLT-03722
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/suhem-facades-private-limited-cp-ib-no365-mb-iv-2021-03bb62df

## Summary

### Background

VISHWA GREEN REALTORS PRIVATE LIMITED, the Operational Creditor, filed a Company Petition under Section 9 of the Insolvency & Bankruptcy Code, 2016 (IBC), seeking initiation of Corporate Insolvency Resolution Process (CIRP) against SUHEM FACADES PRIVATE LIMITED, the Corporate Debtor, for an amount of Rs. 3,04,72,487 with an 18% interest rate. The Operational Creditor claimed that the amount due was an advance paid towards a works contract awarded to the Corporate Debtor for engineering, fabrication, supply, and installation of façade works for a proposed tower. The Corporate Debtor denied the allegations, stating that the contract did not contain a termination clause and that substantial work had been completed.

## Facts

VISHWA GREEN REALTORS PRIVATE LIMITED (Operational Creditor) filed a petition against SUHEM FACADES PRIVATE LIMITED (Corporate Debtor) under Section 9 of the IBC, seeking to initiate CIRP. The Operational Creditor claimed Rs. 3,04,72,487 with 18% interest, stating it was an advance for a works contract. The Corporate Debtor was to provide engineering, fabrication, supply, and installation of façade works for a tower, with a total contract value of Rs. 10.30 Crores. The Operational Creditor paid Rs. 3,65,42,987 between 2019-01-23 and 2020-02-18. The Operational Creditor terminated the contract on 2020-03-16, citing poor performance. The Corporate Debtor, in its reply dated 2020-03-27, denied the allegations, stating the contract lacked a termination clause and

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## Issues and analysis

### Issue 1: Whether there is a pre-existing dispute between the …

**Ratio:** A petition under Section 9 of the IBC is not maintainable if there is a pre-existing

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**Reasoning:** The court found sufficient material to infer a dispute regarding the quantum of work done

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**Interpretation:** The existence of a genuine dispute, even if not fully adjudicated, bars the

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**Application:** The court applied the ratio to the facts, noting that the Corporate Debtor had

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## Parties

- **Judges:** Prabhat…; KISHORE VEMULAPALL…
- **Appellants:** VISHWA GREEN…
- **Respondents:** SUHEM FACADES…

## Timeline

- **2018-01-11 — Corporate Debtor's…**: Corporate Debtor's commercial offer…
- **2019-01-23 — Payment by Operational…**: Operational Creditor paid Rs.3,65,42,987…

## 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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