TaxTMI 
TaxTMI 
2026 (5) TMI 442
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....tion of Corporate Insolvency Resolution Process ('CIRP' in short) against the Respondent/Corporate Debtor-Kamladityya Construction Private Limited in respect of purported operational debt due and payable to the Appellant. Aggrieved by the impugned order, the present appeal has been preferred by the Appellant. 2. Introducing the facts of the case and making their submissions as pleaded in the appeal, the Ld. Counsel for the Appellant submitted that it was engaged in the business of providing firefighting and Heating Ventilation and Air Conditioning ('HVAC' in short) services on contractual basis and had established a business relationship with the Respondent/Corporate Debtor-Kamladityya Construction Pvt Ltd, for execution of firefighting and HVAC works in their infrastructure projects. The Respondent had awarded contractual works in four separate projects to the Appellant in 2018 viz. Industrial Model Township, Rohtak in Haryana; Maharani Laxmi Bai Medical College, Jhansi in Uttar Pradesh; MSME Project, Kanpur in Uttar Pradesh and NICF Campus, Ghitorni in New Delhi. It was submitted that pursuant to the work orders issued by the Respondent, the Appellant had duly executed the con....
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....bove the threshold limits for admission of the Section 9 application. Thus, the reliance placed by the Adjudicating Authority on Section 10A to dismiss the Section 9 application is wholly misplaced. Assailing the impugned order for having caused miscarriage of justice, the Appellant has preferred the present appeal. 3. Per contra, supporting the findings returned by the Adjudicating Authority and strongly opposing the arguments canvassed by the Appellant, the Ld. Counsel for the Respondent submitted that the Section 9 application has been rightly rejected on grounds of the Appellant having added unbilled amount to the alleged operational debt with respect to work which was never asked to be done nor ever done by them; pre-existing disputes with regard to work executed by the Appellant which had been communicated to the Appellant on umpteen occasions even prior to the Section 8 Demand Notice; wrongful inclusion of defaults which were covered by the Section 10A period by the Appellant as well as irregularly clubbing together of the four separate contracts to cross the threshold limits. 4. We have heard the Ld. Counsel for both parties and perused the records carefully. 5. It....
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.... (2), by an order- (i)..... (ii) reject the application and communicate such decision to the operational creditor and the corporate debtor, if- (a) the application made under sub-section (2) is incomplete; (b) there has been [payment] of the unpaid operational debt; (c) the creditor has not delivered the invoice or notice for payment to the corporate debtor; (d) notice of dispute has been received by the operational creditor or there is a record of dispute in the information utility; or (e) any disciplinary proceeding is pending against any proposed resolution professional: Provided that Adjudicating Authority, shall before rejecting an application under sub-clause (a) of clause (ii) give a notice to the applicant to rectify the defect in his application within seven days(i) of the date of receipt of such notice from the adjudicating Authority." 7. Present is a case where we find that the Corporate Debtor in its reply on 03.11.2022 to the Section 8 notice dated 21.10.2022 has categorically denied the claim raised by the Operational Creditor on the grounds that they are not legally due or payable besides disp....
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.... otherwise, there is pre-existing dispute between the parties with respect to commissioning of work by your client and payments thereof for all the sites. 6. It is stated that the present notice is completely false, wrong and without any basis. The present notice is totally baseless, false and untenable as there is a pre-existing dispute between the parties with respect to commission of work by your client and transaction in question, which has been raised time and again by our client on many occasions through emails, whatsapp messages and personally. As such, the present notice is issued completely against the principles of provisions of the Insolvency and Bankruptcy Code." (Emphasis supplied) In subsequent paragraphs of the above reply as at para 8, project- wise disputes have been outlined separately by the Respondent under the heading of "Deficiencies/Defects/Non-completion". It is therefore patently clear that disputes had been raised by the Corporate Debtor both in the reply to the Section 8 Demand notice and even in communications prior to that with regard to the implementation of all the four projects. 10. The object and purpose of IBC is to reorganize and....