Tirupati Drilling & Mining Services Private Limited Vs Sadbhav Engineering (NCLAT Delhi)
NCLAT Delhi held that application under section 9 of the Insolvency and Bankruptcy Code [IBC] is not maintainable due to pre-existing dispute between the parties. Accordingly, the appeal is dismissed.
Facts- The Corporate Debtor was engaged by Uranium Corporation of India Ltd (UCIL) to carry out activities at Banduhurang Opencast Mines, Jamshedpur. Subsequently, the Corporate Debtor issued a Work Order to the Operational Creditor for drilling operations at the site, initially for a year, and later extended until March 31, 2020. Despite reminders, the Corporate Debtor failed to release outstanding payments to the Operational Creditor and, instead, denied claims and making baseless allegations. The Operational Creditor had issued invoices covering the period from November, 2018, to February, 2020, which were received by the Corporate Debtor on May 5, 2021. The Corporate Debtor also endorsed balance confirmations to the Operational Creditor.
Subsequently, the Operational Creditor issued a Demand Notice u/s. 8 of the IBC, which was duly received by the Corporate Debtor. With no resolution in sight, the Operational Creditor filed an Application u/s 8 and 9 of the IBC. However, the AA dismissed the Application on the grounds of pre-existing disputes between the parties. Aggrieved by this decision, the Appellant has filed the present Appeal.
