# In the matter of Aarcity Infrastructure Private Limited

> NCLT judgment dated 2023-07-18. Citation: TCN-2023-NCLT-05299. M/s. Euphoria Construction Pvt. Ltd. filed an application under Section 9 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 18 Jul 2023
- **Citation:** TCN-2023-NCLT-05299
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-new-delhi/aarcity-infrastructure-private-limited-045db169

## Summary

### Background

M/s. Euphoria Construction Pvt. Ltd. filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate corporate insolvency resolution process against M/s. Aarcity Infrastructure Pvt. Ltd. for an alleged default of Rs. 2,19,60,566.

## Facts

Euphoria Construction Pvt. Ltd. (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Aarcity Infrastructure Pvt. Ltd. (Corporate Debtor).

The Operational Creditor claimed a default of Rs. 2,19,60,566.

The Corporate Debtor was constructing a housing project named Regency at Plot No. GH-03B, Sector-16C, Greater Noida.

A contract was executed between the Corporate Debtor and the Operational Creditor on 04.08.2014 for the construction of towers B, C, D, and E of the Project.

The Operational Creditor raised invoices for Rs. 12,63,34,030/-, but only received Rs. 10,43,73,464/-.

The final bills for an amount of Rs. 12,53,34,238/- were raised on 30.11.2017.

…

## Issues and analysis

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

**Ratio:** The application should be admitted if there is an operational debt, a default in payment,

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**Reasoning:** The Adjudicating Authority found that there was an operational debt due from the

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**Interpretation:** Section 9 of the Insolvency and Bankruptcy Code, 2016, allows an operational

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**Application:** The Adjudicating Authority admitted the petition and initiated CIRP against the

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## Parties

- **Judges:** BACHU VENKAT…; RAHUL BHA…
- **Appellants:** M/s. Euphoria…; M/s. Euphoria…
- **Respondents:** M/s. Aarcity…
- **Other parties:** Rajendra Prasad…; Manish Ag…
- **Advocates:** Vaibhav…; Kartik…; +2 more

## Timeline

- **2014-08-04 — Contract Ex…**: A contract was executed between the Corporate Debtor and the Operational Creditor for…
- **2017-11-30 — Final Bills…**: The final bills for an amount of…

## 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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