Vanshita Transport Vs Montecarlo Limited (NCLT Ahmedabad)
The Operational Creditor filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authorities) Rules, 2016, seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor.
The applicant, a sole proprietor engaged in transportation of cement, claimed that transportation services were rendered under work orders and invoices issued between 08.11.2022 and 25.11.2024. It alleged that an operational debt of ₹1,47,83,503, including ₹6,87,298 as interest, remained unpaid. A demand notice in Forms 3 and 4 dated 19.12.2024 was issued claiming unpaid operational debt. The applicant also relied upon the Information Utility record evidencing default, work orders, invoices, ledger statement, and GST registration. The work order effective from 01.04.2024 contained an arbitration clause. The Tribunal also noted that the work order did not contain any provision for interest.
The Corporate Debtor opposed the application, alleging that the claim was disputed and tainted by fraud. It submitted that the applicant had been engaged under work orders dated 11.07.2022 and 01.04.2024, and that an internal audit had revealed a conspiracy between the applicant and a former employee resulting in inflated transportation rates and inflated transportation distances. According to the Corporate Debtor, a police complaint had been lodged on 24.12.2024, prior to the applicant’s notice dated 01.01.2025, and the alleged fraud caused losses of ₹491.07 lakh. It further claimed counterclaims of ₹250.31 lakh towards inflated rates and ₹240.76 lakh towards excess distances, contended that disputes required detailed evidence, and argued that arbitration under Clause 16 of the work orders was the agreed dispute resolution mechanism. The Corporate Debtor also stated that it had filed a petition under Section 11 of the Arbitration and Conciliation Act, 1996 before the Gujarat High Court seeking appointment of an arbitrator.
