# In the matter of Prakash Corporates Vs. Dee Vee Projects Limited Civil Appeal No(S). 1318 of 2022

> SC judgment dated 2022-02-14. Citation: TCN-2022-SC-00072. This case involves an appeal against the High Court's order upholding the Commercial Court's…

- **Court:** SC
- **Order date:** 14 Feb 2022
- **Citation:** TCN-2022-SC-00072
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/prakash-corporates-vs-dee-vee-projects-limited-civil-appeal-no-7491c198

## Summary

### Background

This case involves an appeal against the High Court's order upholding the Commercial Court's decision to deny the defendant-appellant's request for additional time to file a written statement in a civil suit. The suit pertains to monetary liabilities arising from sub-contracts related to public contract works. The appellant had sought a stay of proceedings due to pending insolvency resolution proceedings against the respondent before the NCLT. The Commercial Court rejected the appellant's request, citing the expiration of the 120-day period for filing a written statement under the Commercial Courts Act, 2015. The High Court upheld this decision, leading to the present appeal before the Supreme Court.

## Facts

Prakash Corporates (appellant) and Dee Vee Projects Limited (respondent) had business dealings related to public contract works. The respondent sub-contracted certain works to the appellant under two work orders dated 01.04.2017 and 01.07.2017. Disputes arose regarding monetary liabilities under these sub-contracts. On 01.07.2020, the appellant sent a demand notice to the respondent under the Insolvency and Bankruptcy Code, 2016, claiming an unpaid operational debt of Rs. 17,94,11,835/-. The respondent denied the claim and made a counter-claim of Rs. 3,73,24,821/-. On 11.09.2020, the appellant initiated corporate insolvency resolution process against the respondent before the NCLT. On 21.12.2020, the respondent filed a suit against the appellant for recovery of Rs.

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## Issues and analysis

### Issue 1: Whether the opportunity of filing a written statement in the subject suit has rightly been …

**Ratio:** The orders passed by the Supreme Court in Suo Motu Writ Petition (Civil) No. 3 of 2020

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**Reasoning:** The Supreme Court reasoned that the COVID-19 pandemic created extraordinary circumstances

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**Interpretation:** The Supreme Court interpreted the orders in SMWP No. 3 of 2020 as providing for

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**Application:** The Supreme Court applied the ratio and reasoning to the specific facts of the

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## Parties

- **Judges:** DINESH MAHE…; VIKRAM…
- **Appellants:** Prakash Cor…
- **Respondents:** Dee Vee Projects…

## Timeline

- **2017-04-01 — Work Ord…**: First work order (DV/HW/03) issued by…
- **2017-07-01 — Work Ord…**: Second work order (DV/HW/08) issued by…

## 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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