# In the matter of V.N. Buildtech Private Limited CP No. (IB)- 319-9-JPR-2019

> NCLT judgment dated 2022-12-05. Citation: TCN-2022-NCLT-00241. D.B. Corp Limited, the Operational Creditor/Applicant, filed an application under Section 9 of…

- **Court:** NCLT
- **Order date:** 5 Dec 2022
- **Citation:** TCN-2022-NCLT-00241
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/vn-buildtech-private-limited-cp-no-ib-319-9-jpr-2019-053c70e4

## Summary

### Background

D.B. Corp Limited, the Operational Creditor/Applicant, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against V.N. Buildtech Private Limited, the Corporate Debtor/Respondent. The application stems from alleged default in payment of operational dues amounting to Rs. 82,25,878/- along with interest. The dispute arises from an agreement dated 25.10.2013, where the Corporate Debtor engaged the Operational Creditor for advertising its project. The consideration was divided into cash payment and barter payment. The Corporate Debtor failed to provide possession of flats as per the barter agreement and also defaulted on invoice payments, leading to the application for CIRP.

## Facts

D.B. Corp Limited (Operational Creditor) filed an application to initiate CIRP against V.N. Buildtech Private Limited (Corporate Debtor) for non-payment of operational dues. The dues arose from an agreement dated 25.10.2013, where V.N. Buildtech engaged D.B. Corp for advertising its project. The total consideration was Rs. 1,01,83,090/-, divided into cash and barter payments. V.N. Buildtech made a cash payment of Rs. 19,91,240/- but failed to hand over possession of two flats as part of the barter agreement. D.B. Corp raised 11 invoices totaling Rs. 82,25,878/- between 06.10.2013 and 30.03.2014, which remained unpaid. D.B. Corp claimed interest of Rs. 39,47,069/- on the unpaid invoices. The agreement contained an arbitration clause. D.B. Corp obtained an ex-parte

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## Issues and analysis

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

**Ratio:** Section 8(2)(a) of the Insolvency and Bankruptcy Code, 2016 states that the existence of

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**Reasoning:** The court reasoned that the admission of the arbitration application under Section 34 of

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**Interpretation:** The existence of a pre-existing dispute, as evidenced by the pending Section 34

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**Application:** In this case, the Corporate Debtor had challenged the Arbitral Award under

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## Parties

- **Judges:** Deep Chandr…; Prasanta Kumar…
- **Appellants:** DB Corp L…
- **Respondents:** V.N. BUILDTECH…
- **Advocates:** Sandeep…; Rakesh K…

## Timeline

- **2013-10-25 — Agreement between…**: The Applicant and Respondent entered into an Agreement wherein the Corporate Debtor…
- **2013-09-26 — Cheque I…**: Corporate Debtor issued a…

## 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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