w w w . L a w y e r S e r v i c e s . i n



Ved Contracts Pvt. Ltd. v/s Pan Realtors Pvt. Ltd.


Company & Directors' Information:- G. P. REALTORS PRIVATE LIMITED [Active] CIN = U70100HR2006PTC047811

Company & Directors' Information:- C & C REALTORS LIMITED [Active] CIN = U45200HR2009PLC039834

Company & Directors' Information:- PAN INDIA CORPORATION LIMITED [Active] CIN = L72200DL1984PLC017510

Company & Directors' Information:- P D REALTORS LIMITED [Active] CIN = U70100PN2008PLC133035

Company & Directors' Information:- G N D REALTORS PRIVATE LIMITED [Strike Off] CIN = U70101RJ2009PTC029606

Company & Directors' Information:- K M S REALTORS PRIVATE LIMITED [Active] CIN = U45400DL2007PTC167503

Company & Directors' Information:- B V M REALTORS PRIVATE LIMITED [Active] CIN = U45204DL2010PTC211528

Company & Directors' Information:- H S REALTORS INDIA PRIVATE LIMITED [Active] CIN = U45201UR1999PTC024887

Company & Directors' Information:- B G REALTORS PRIVATE LIMITED [Strike Off] CIN = U70200WB1987PTC041875

Company & Directors' Information:- V P REALTORS PRIVATE LIMITED [Active] CIN = U45201DL2005PTC134073

Company & Directors' Information:- S K CONTRACTS PRIVATE LIMITED [Active] CIN = U45400DL1986PTC025351

Company & Directors' Information:- F R REALTORS PRIVATE LIMITED [Active] CIN = U70109WB2011PTC163451

Company & Directors' Information:- P P REALTORS PRIVATE LIMITED [Active] CIN = U45201DL2005PTC133975

Company & Directors' Information:- K & A REALTORS PRIVATE LIMITED [Converted to LLP] CIN = U70101DL2005PTC138690

Company & Directors' Information:- S P REALTORS PRIVATE LIMITED [Active] CIN = U45202MH1994PTC082359

Company & Directors' Information:- C AND K REALTORS PRIVATE LIMITED [Active] CIN = U70102MH2009PTC197248

Company & Directors' Information:- V S F REALTORS PRIVATE LIMITED [Active] CIN = U45208DL1996PTC075051

Company & Directors' Information:- N R REALTORS PRIVATE LIMITED [Active] CIN = U70109DL2008PTC177015

Company & Directors' Information:- M S REALTORS PRIVATE LIMITED [Converted to LLP] CIN = U70101DL1996PTC083529

Company & Directors' Information:- S. S. E. CONTRACTS PRIVATE LIMITED [Active] CIN = U74900WB2013PTC192042

Company & Directors' Information:- A TO Z REALTORS PRIVATE LIMITED [Active] CIN = U45400DL2007PTC170891

Company & Directors' Information:- J G REALTORS PRIVATE LIMITED [Strike Off] CIN = U45400WB2010PTC155457

Company & Directors' Information:- T S REALTORS PRIVATE LIMITED [Active] CIN = U45200DL2007PTC170530

Company & Directors' Information:- B. M. REALTORS PRIVATE LIMITED [Strike Off] CIN = U45400MH2008PTC180042

Company & Directors' Information:- K K REALTORS PRIVATE LIMITED [Under Process of Striking Off] CIN = U70101DL2003PTC121876

Company & Directors' Information:- R. A. REALTORS PRIVATE LIMITED [Active] CIN = U70109WB2011PTC157410

Company & Directors' Information:- J. D. REALTORS LIMITED [Active] CIN = U70101PB1997PLC020817

Company & Directors' Information:- B S R REALTORS PRIVATE LIMITED [Active] CIN = U45200DL2008PTC174369

Company & Directors' Information:- C V P REALTORS PRIVATE LIMITED [Strike Off] CIN = U70101KL1995PTC009794

Company & Directors' Information:- R V N REALTORS PRIVATE LIMITED [Strike Off] CIN = U70101MH2012PTC231358

Company & Directors' Information:- A B CONTRACTS PRIVATE LIMITED [Strike Off] CIN = U74899DL2000PTC105814

Company & Directors' Information:- R S B REALTORS PRIVATE LIMITED [Active] CIN = U70109WB2011PTC158740

Company & Directors' Information:- M M REALTORS P LTD [Strike Off] CIN = U70101TN1995PTC033675

Company & Directors' Information:- VED CONTRACTS PRIVATE LIMITED [Active] CIN = U45201DL2001PTC113460

Company & Directors' Information:- T. G. REALTORS PRIVATE LIMITED [Active] CIN = U45200WB2007PTC112855

Company & Directors' Information:- PAN REALTORS PRIVATE LIMITED [Active] CIN = U70101DL2009PTC193609

Company & Directors' Information:- J M G REALTORS PRIVATE LIMITED [Active] CIN = U70100MH1996PTC100890

Company & Directors' Information:- G. M. REALTORS PVT. LTD. [Active] CIN = U70101WB1995PTC067365

Company & Directors' Information:- N. K. REALTORS PRIVATE LIMITED [Active] CIN = U45201WB2001PTC092929

Company & Directors' Information:- B N REALTORS PRIVATE LIMITED [Active] CIN = U45201DL2006PTC144765

Company & Directors' Information:- S. M. REALTORS PVT. LTD. [Active] CIN = U70101WB1995PTC067366

Company & Directors' Information:- M. T. REALTORS PRIVATE LIMITED [Active] CIN = U70100CT2009PTC021458

Company & Directors' Information:- K K REALTORS PRIVATE LIMITED [Strike Off] CIN = U70109DL1997PTC085207

Company & Directors' Information:- B B REALTORS PRIVATE LIMITED [Active] CIN = U45201DL2004PTC131024

Company & Directors' Information:- V I P REALTORS PRIVATE LIMITED [Active] CIN = U70101MH2007PTC174852

Company & Directors' Information:- G. D. REALTORS PRIVATE LIMITED [Active] CIN = U45202MH2008PTC186324

Company & Directors' Information:- A V REALTORS (INDIA) PRIVATE LIMITED [Strike Off] CIN = U45201OR2012PTC015312

Company & Directors' Information:- B S REALTORS PRIVATE LIMITED [Active] CIN = U70101TN2007PTC065393

Company & Directors' Information:- M S S REALTORS PRIVATE LIMITED [Active] CIN = U70101TZ2007PTC013891

Company & Directors' Information:- P. J. REALTORS PRIVATE LIMITED [Strike Off] CIN = U70100WB2007PTC121022

Company & Directors' Information:- S R K REALTORS PRIVATE LIMITED [Active] CIN = U45400DL2008PTC183734

Company & Directors' Information:- M R S REALTORS PRIVATE LIMITED [Strike Off] CIN = U45200DL2008PTC179675

Company & Directors' Information:- J P S REALTORS PRIVATE LIMITED [Active] CIN = U70101DL2004PTC128883

Company & Directors' Information:- S N REALTORS PRIVATE LIMITED [Active] CIN = U45201DL2005PTC134752

Company & Directors' Information:- REALTORS PRIVATE LIMITED [Active] CIN = U45200BR1986PTC002351

Company & Directors' Information:- R J REALTORS PRIVATE LIMITED [Active] CIN = U70109WB2011PTC168037

Company & Directors' Information:- M. L. REALTORS PRIVATE LIMITED [Active] CIN = U45201MH2010PTC203043

Company & Directors' Information:- R S CONTRACTS PRIVATE LIMITED [Strike Off] CIN = U45202WB1997PTC084794

Company & Directors' Information:- L. M. REALTORS PRIVATE LIMITED [Active] CIN = U45202KL2007PTC022412

Company & Directors' Information:- B R REALTORS PVT LTD [Strike Off] CIN = U70101PB1989PTC009399

Company & Directors' Information:- V V REALTORS (INDIA) PRIVATE LIMITED [Active] CIN = U45201TZ2004PTC011135

Company & Directors' Information:- D H REALTORS PRIVATE LIMITED [Strike Off] CIN = U45400MH2004PTC148011

Company & Directors' Information:- R H REALTORS PRIVATE LIMITED [Active] CIN = U70102MH2007PTC176509

Company & Directors' Information:- G N M REALTORS PRIVATE LIMITED [Active] CIN = U70100MH1999PTC119688

Company & Directors' Information:- N & N REALTORS PRIVATE LIMITED [Strike Off] CIN = U74999MH2015PTC261338

Company & Directors' Information:- K T REALTORS PRIVATE LIMITED [Active] CIN = U45300MH2007PTC171035

Company & Directors' Information:- N R R REALTORS PRIVATE LIMITED [Active] CIN = U70101TG2007PTC054579

Company & Directors' Information:- A K C REALTORS PRIVATE LIMITED [Strike Off] CIN = U70100UP2014PTC064025

Company & Directors' Information:- F. M. REALTORS PRIVATE LIMITED [Active] CIN = U45400WB2011PTC159512

Company & Directors' Information:- C. R. REALTORS PRIVATE LIMITED [Active] CIN = U45400DL2011PTC222823

Company & Directors' Information:- B K G REALTORS PRIVATE LIMITED [Strike Off] CIN = U74899DL2005PTC141569

Company & Directors' Information:- P. A. REALTORS PRIVATE LIMITED [Strike Off] CIN = U70101DL2010PTC204362

Company & Directors' Information:- G-REALTORS PRIVATE LIMITED [Active] CIN = U70109PN2019PTC188290

Company & Directors' Information:- REALTORS (INDIA) PRIVATE LIMITED [Strike Off] CIN = U70101TN1993PTC024502

Company & Directors' Information:- D N R REALTORS PRIVATE LIMITED [Strike Off] CIN = U45201DL2006PTC144641

Company & Directors' Information:- J D CONTRACTS PRIVATE LIMITED [Active] CIN = U45400DL2011PTC214287

Company & Directors' Information:- H D REALTORS PRIVATE LIMITED [Active] CIN = U70101DL2005PTC135107

Company & Directors' Information:- Z. A. REALTORS PRIVATE LIMITED [Active] CIN = U70109WB1978PTC031644

Company & Directors' Information:- K H REALTORS PRIVATE LIMITED [Active] CIN = U45200MH2007PTC168987

Company & Directors' Information:- U P REALTORS PRIVATE LIMITED [Active] CIN = U45200UP2010PTC069119

Company & Directors' Information:- N. D. S. S. REALTORS PRIVATE LIMITED [Strike Off] CIN = U70109WB2012PTC171684

Company & Directors' Information:- I M REALTORS PRIVATE LIMITED [Active] CIN = U45200DL2007PTC157985

Company & Directors' Information:- I P REALTORS PRIVATE LIMITED [Strike Off] CIN = U70100PB2003PTC026497

Company & Directors' Information:- V H C I REALTORS PRIVATE LIMITED [Active] CIN = U45200PN2013PTC149734

Company & Directors' Information:- M. Y. REALTORS PRIVATE LIMITED [Strike Off] CIN = U70109MH2007PTC169892

Company & Directors' Information:- R B REALTORS PRIVATE LIMITED [Strike Off] CIN = U70200MH2006PTC161052

Company & Directors' Information:- O D C REALTORS PRIVATE LIMITED [Strike Off] CIN = U70200PN2013PTC146383

Company & Directors' Information:- S C K REALTORS PRIVATE LIMITED [Strike Off] CIN = U70102MH2004PTC143962

Company & Directors' Information:- S J REALTORS PRIVATE LIMITED [Strike Off] CIN = U70102MH2004PTC147672

Company & Directors' Information:- A J REALTORS PRIVATE LIMITED [Active] CIN = U70102MH2010PTC203187

Company & Directors' Information:- G K REALTORS PRIVATE LIMITED [Active] CIN = U45200MH2003PTC143408

Company & Directors' Information:- J B REALTORS PRIVATE LIMITED [Active] CIN = U70100MH2004PTC150207

Company & Directors' Information:- J K REALTORS PRIVATE LIMITED [Strike Off] CIN = U70101MH2006PTC159915

Company & Directors' Information:- V AND V REALTORS PRIVATE LIMITED [Active] CIN = U70101MH2003PTC142738

Company & Directors' Information:- N A REALTORS PRIVATE LIMITED [Active] CIN = U70101MH2012PTC238593

Company & Directors' Information:- M. H. REALTORS PRIVATE LIMITED [Under Process of Striking Off] CIN = U45207MH2010PTC199896

Company & Directors' Information:- L V REALTORS PRIVATE LIMITED [Strike Off] CIN = U45400TG2008PTC060233

Company & Directors' Information:- A R S N REALTORS INDIA PRIVATE LIMITED [Strike Off] CIN = U70102TZ2012PTC018053

Company & Directors' Information:- S K A REALTORS PRIVATE LIMITED [Active] CIN = U70102TG2008PTC059733

Company & Directors' Information:- C L R REALTORS PRIVATE LIMITED [Strike Off] CIN = U45209TG2011PTC076073

Company & Directors' Information:- K N S REALTORS PRIVATE LIMITED [Active] CIN = U45400DL2007PTC167521

Company & Directors' Information:- S R D REALTORS PRIVATE LIMITED [Strike Off] CIN = U45400DL2008PTC177420

Company & Directors' Information:- D H CONTRACTS PRIVATE LIMITED [Active] CIN = U45400DL2010PTC198200

Company & Directors' Information:- K Y REALTORS PRIVATE LIMITED [Strike Off] CIN = U74999DL2005PTC135122

Company & Directors' Information:- H G REALTORS PRIVATE LIMITED [Active] CIN = U45201DL2003PTC122114

Company & Directors' Information:- A S G REALTORS PRIVATE LIMITED [Active] CIN = U45201DL2004PTC131531

Company & Directors' Information:- G C REALTORS PRIVATE LIMITED [Active] CIN = U45201DL2005PTC140925

Company & Directors' Information:- G. S. M. REALTORS PRIVATE LIMITED [Active] CIN = U70200DL2008PTC180163

Company & Directors' Information:- V P G REALTORS PRIVATE LIMITED [Strike Off] CIN = U70200DL2008PTC182214

Company & Directors' Information:- R S G REALTORS PRIVATE LIMITED [Active] CIN = U70109DL2007PTC163328

Company & Directors' Information:- G S R REALTORS PRIVATE LIMITED [Active] CIN = U70109DL2009PTC197472

Company & Directors' Information:- B AND S REALTORS PRIVATE LIMITED [Active] CIN = U70101DL2003PTC121306

Company & Directors' Information:- R AND N REALTORS PRIVATE LIMITED [Strike Off] CIN = U70101DL2005PTC142028

Company & Directors' Information:- A. S. REALTORS PRIVATE LIMITED [Active] CIN = U70101DL2011PTC214332

Company & Directors' Information:- L D REALTORS PRIVATE LIMITED [Active] CIN = U45200MP2009PTC022474

Company & Directors' Information:- K N A REALTORS PRIVATE LIMITED [Strike Off] CIN = U70200HR2013PTC048577

Company & Directors' Information:- N J CONTRACTS PRIVATE LIMITED [Strike Off] CIN = U74210HR2011PTC042559

Company & Directors' Information:- M G REALTORS (INDIA) PRIVATE LIMITED [Strike Off] CIN = U70100KA2013PTC069038

Company & Directors' Information:- K J REALTORS PRIVATE LIMITED [Active] CIN = U55101KL2014PTC037123

Company & Directors' Information:- N S REALTORS PRIVATE LIMITED [Active] CIN = U45201TR2020PTC013788

Company & Directors' Information:- J P S CONTRACTS PRIVATE LIMITED [Strike Off] CIN = U45201DL2000PTC107170

Company & Directors' Information:- A N REALTORS PRIVATE LIMITED [Strike Off] CIN = U70101DL2006PTC156218

    Company Appeal (AT) (Insolvency) No. 908 of 2019

    Decided On, 03 January 2020

    At, National Company Law Appellate Tribunal

    By, THE HONOURABLE MR. M. VENUGOPAL
    By, JUDICIAL MEMBER
    By, THE HONOURABLE MR. KANTHI NARAHARI
    By, TECHNICAL MEMBER & THE HONOURABLE MR. V.P. SINGH
    By, TECHNICAL MEMBER

    For the Appellant: Amit Prabhat Deshpande, Advocate. For the Respondent: Alok Dhir, Varsha Banerjee, Kunal Godhwani, Advocates.



Judgment Text


V.P. Singh, Member (Technical)

1. This appeal has been filed against the order dated 18th July, 2019 passed by the Adjudicating Authority, National Company Law Tribunal, New Delhi Bench, in Company Petition No. (IB)-645(ND) 2019 M/s. Wed Construction Pvt. Ltd. whereby the petition filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 (for short I&B Code) has been rejected. Feeling aggrieved by the said order, the appellant - ‘operational creditor’ has filed this Appeal.

2. Brief facts as stated by the ‘operational creditor’ is engaged in the business of construction and was awarded a contract by the ‘corporate debtor’ to undertake civil construction of their project PAN OASIS at Sector 70 Noida. Four work orders were awarded to the operational creditor between January, 2010 and January, 2014 under which the work was executed. The corporate debtor made part payment of the running bills raised and deducted TDS.

3. The ‘operational creditor’ claims that Rs. 16,83,03,963/- has been paid by the corporate debtor including TDS and WCT through cheques and RTGS. The bills of Rs. 2,41,58,130/- is due and payable against the ‘corporate debtor’. The ‘corporate debtor’ had raised a debit note of Rs. 6,21,164/- which was never accepted by the operational creditor when the defaulted in making the payment, therefore, a demand notice under Section 8 of the Insolvency and Bankruptcy Code, 2016 was issued on 5th January, 2019 against the corporate debtor demanding the outstanding balance together with the interest accruing thereon as well as the GST and other charges payable. The demand notice was duly replied to by the corporate debtor.

4. The Adjudicating Authority has rejected the petition on the ground of ‘pre-existing dispute’ before the issuance of demand notice. We have heard the argument of both the parties and perused the record.

5. Learned Counsel for the ‘corporate debtor’ submitted that the ‘operational creditor’ has not adhered to the specification of the work order. The demand raised in only in respect of the running and the final bills has neither been raised nor accepted by the corporate debtor. The contract stands concluded only on submission of the final bill duly approved and certified by them. We have heard the arguments of the learned Counsel for the parties and perused the record.

6. The learned Counsel for the operational creditor has claimed Rs. 2,41,58,130 as outstanding amount towards corporate debtor including Rs. 69,00,000/- as the retention amount. Learned Counsel for the corporate debtor disputed the allegations and submitted that operational creditor has not adhered to the specification of the work order. The demand raised is only in respect of the running bills and the final bills has neither been raised nor accepted by the corporate debtor. It is further, pleaded that the contract stands concluded only on submission of the final bill. The corporate debtor has also pleaded that there was pre-existing dispute before the issuance of the demand notice. Therefore, the petition under Section 9 is not maintainable on account of ‘pre-existing dispute’. The respondent has placed reliance on the e-mail communication dated 24th October, 2018 copy of the e-mail is given as under:

“From- Rahul Rajvanshi,

Dear Prashant,

With reference to trailing mail regarding updated payment to you (M/s. Ved Contracts), confirmation is still pending, please do the needful on a priority basis.

Further; you have shared a statement “Claim PAN 3.10.2018”

Without references and supporting documents, it seems to be totally baseless, please submit your claim with the consideration of work order’s Terms & Conditions and mutually agreed, as following:

— Final Bill certified Amount w.r.t. work order

— Payment Received in any Account

— Recovery against electricity

— Recovery against client supplied Machinery as Tower Crane, Boom place etc.

— Recovery against client supplied material as Bricks, Scaffolding material, Sand, Badarpur etc.

— Recovery against client-supplied labour

— Debit against incomplete work which was executed by third party on your risk and cost

— Debit against quality.

— Tax deductions as per work done and payment.

— Recovery against reconciliation of material as per work order terms and condition.

— Balance (if any) will be considered at the time of finalisation.

Up to Finalization of submitted bills, we negate your exaggerated claim. Any other information/detail required not stated as above will be intimated to you after received receipt of the above information.

This mail is without prejudice to all our rights which are hereby expressly reserved.

Thanks & Regards,

Rahul Rajvanshi,

Sr. Manager-Billing & Contracts,

Pan Realtors Pvt. Ltd.

GH- 01, Sector- 70,

Noida, U.P.

M- 9560095584”.

On perusal of the above email, correspondence dated 24th October 2018, it is clear that corporate debtor demanded certain documents to settle the claim dated 3rd October, 2018 from the operational creditor. The details of the documents are mentioned in the email above.

7. It is also stated in the above email that “up to finalisation of submitted bills, we negate your exaggerated claim. Any other information/detail required not stated as above will be intimated to you after received receipt of the above information”.

8. Admittedly, notice under Section 8 of the Insolvency and Bankruptcy Code, 2016 (I&B Code) was issued against the corporate debtor on 5th January 2019, i.e. much before the issuance of demand notice. The corporate debtor raised an objection regarding alleged bills and stated that in the email dated 24th October 2018, the submitted bills are the exaggerated claim.

9. Thus, it is clear that before the issuance of the demand notice, there was a pre-existing dispute.

10. In VII (2017) SLT 269=2018(1) SCC 353, Mobilox Innovation Private Limited v. Kirusa Software Private Limited, Hon’ble Supreme Court has laid down the test for determination of existing dispute for admitting and rejecting the petition under Sections 8 and 9 of the Insolvency and Bankruptcy Code, 2016.

11. Hon’ble Supreme Court has held that the Adjudicating Authority is to see at the stage of admitting/rejecting the application is whether there is plausible contention, which requires further investigation and that the dispute is not patently, feeble, legal arguments or assertion of facts, unsupported by evidence. It is important to separate the grain from the chaff and to reject a spurious defence, which is mere bluster. However, in doing so, the authority does not need to be satisfied that the defence is likely to succeed. So long as a dispute truly exists in fact and is not spurious, hypothetical or illusory, the Adjudicating Authority has to reject the application.

12. In the present case, applying the test of “existence of a dispute”, without going into the merit of the dispute, it is apparent that the corporate debtor had raised a plausible contention to require further investigation, which was not a patently, feeble, legal arguments or an assertion of facts, unsupported by evidence. The defence was not spurious, mere bluster, plainly, frivolous or vexatious.

13. It is also apparent from the record that alleged demand of the operational creditor is only in respect of the running bills and the final bill has neither been raised nor accepted by the

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corporate debtor. The contract stands concluded only on submission of the final bill duly approved and certified by the operational creditor. In this operational creditor has not filed any documents to show that the final bill was submitted regarding the alleged contract and the outstanding amount was also acknowledged by the corporate debtor. These email/communication submitted by the corporate debtor also shows that there was a pre-existing dispute, before issuance of the demand notice. Therefore, we are of the considered opinion that the Adjudicating Authority has rightly rejected the application filed under Section 9 of the I&B Code for initiation of the corporate insolvency process. There is no need for interference in the order passed by the Adjudicating Authority. Thus, the appeal is rejected. No order as to cost. Appeal dismissed.
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