# In the matter of Choudhary Buildmart Private Limited

> NCLT judgment dated 2023-07-12. Citation: TCN-2023-NCLT-05332. The application was filed by Arun Kaushal & Anr. (Operational Creditors/Applicants) under…

- **Court:** NCLT
- **Order date:** 12 Jul 2023
- **Citation:** TCN-2023-NCLT-05332
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-jaipur/choudhary-buildmart-private-limited-e339a1ad

## Summary

### Background

The application was filed by Arun Kaushal & Anr. (Operational Creditors/Applicants) under Section 9 of IBC, 2016, to initiate CIRP against Choudhary Build Mart Private Limited (Corporate Debtor/Respondent) for non-payment of operational debt.

## Facts

Arun Kaushal and Niru Kaushal (Operational Creditors) filed an application to initiate CIRP against Choudhary Build Mart Private Limited (Corporate Debtor) under Section 9 of the IBC.

The Operational Creditors claimed a default of Rs. 7,64,472.77/- inclusive of interest, arising from unpaid rent and maintenance charges as per a lease agreement.

The Corporate Debtor contended that the premises were vacated on 12.11.2018, and all payments towards rent and maintenance had been made.

The Corporate Debtor argued that the lease deed required registration under the Stamp Act, 1899, and that the landlord's dues cannot be treated as operational dues.

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## Issues and analysis

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

**Ratio:** Section 8(2)(a) of the Code states that the existence of a dispute can interdict Section

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**Reasoning:** The Corporate Debtor raised a dispute regarding vacating the premises on 12.11.2018 and

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**Interpretation:** The Adjudicating Authority interpreted the Corporate Debtor's actions as

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**Application:** The Adjudicating Authority applied Section 8(2)(a) and concluded that the

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## Parties

- **Judges:** Deep Chandr…; ATUL CHAT…
- **Appellants:** Arun Ka…; Niru Ka…
- **Respondents:** Choudhary Build…
- **Advocates:** Srishti J…; Aalok J…; +2 more

## Timeline

- **2017-04-26 — Lease Deed Ag…**: The Applicants and Respondent…
- **2019-07-22 — Demand N…**: Applicants sent a Demand Notice for…

## 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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