# In the matter of SAK Buildtech Pvt. Ltd. (IB)-519(ND)-2021

> NCLT judgment dated 2022-07-19. Citation: TCN-2022-NCLT-04577. The applicant, an operational creditor, filed an application under Section 9 of the Insolvency…

- **Court:** NCLT
- **Order date:** 19 Jul 2022
- **Citation:** TCN-2022-NCLT-04577
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-new-delhi/sak-buildtech-pvt-ltd-ib-519nd-2021-26f91f3a

## Summary

### Background

The applicant, an operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against the respondent, a corporate debtor, for an alleged default in clearing a debt of Rs. 28,14,754.

## Facts

The Corporate Debtor issued a tender on July 14, 2014, for Civil Works in Mercure Hotel, which the Operational Creditor won. A Letter of Intent was issued on October 17, 2014, and subsequently, a Civil Work Agreement was entered into. The agreement stipulated that the Corporate Debtor would pay Rs. 10,32,70,048 for satisfactory work and would retain 5% of the Running Account Bill (RA Bill) as retention money, to be released after one year of virtual completion. Under the Civil Works Agreement, 95% of the RA Bill amount was to be released on a pro-rata basis, and 5% was retention money. Schedule II Clause 1.iii specified a 5% deduction from each RA Bill as retention money, with 1% cash retention released after one year of virtual completion and 4% against a Bank

…

## Issues and analysis

### Issue 1: Whether there was a pre-existing dispute between the Corporate Debtor and the Operational Creditor …

**Ratio:** An application under Section 9 of the IBC must be rejected if a plausible pre-existing

…

**Reasoning:** The Corporate Debtor consistently raised issues regarding defective flooring and

…

**Interpretation:** The court interpreted 'dispute' broadly to include any contention requiring

…

**Application:** The emails exchanged between the parties, detailing the unresolved flooring

…

## Parties

- **Judges:** P.S.N. P…; RAHUL BHA…; +2 more
- **Appellants:** M/s. K. S.…; M/s. K. S.…; +1 more
- **Respondents:** SAK Buildtech…
- **Advocates:** Pawan Bh…; Padmaja…; +4 more

## Timeline

- **July 14, 2014 — Tender i…**: Corporate Debtor issued a notice inviting…
- **October 17, 2014 — Letter of Inte…**: Corporate Debtor issued a Letter 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-new-delhi/sak-buildtech-pvt-ltd-ib-519nd-2021-26f91f3a