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The Tax Publishers 2017 TaxPub(CL) 0428 (Ahd)
Narmada Construction (Indore), (P.) Ltd. v. Agroh Infrastructure Developer (P.) Ltd.
INSOLVENCY AND BRANKRUPTCY CODE, 2016 --Initiation of corporate insolvency resolution process--Petition against non-payment of road construction workNo notice of dispute issued by corporate debtor----Where petition against corporate debtor for initiation of corporate insolvency resolution process, was filed, it would be admitted that corporate debtor had defaulted in making outstanding payments and no reply to demand notice was given by the corporate debtor.--Corporate debtor gave road construction work to operational creditor. Operational creditor had completed the work as per the specification given by the corporate debtor. Operational creditor claimed outstanding amount along with security deposit, but no payment was made by the corporate debtor. Subsequently, operational creditor issued demand notice to the corporate debtor as per section 8 read with rule 5 of the Rules. Corporate debtor had not given any reply to the demand notice sent by the operational creditor. Therefore, operational creditor had filed petition under section 9 against the corporate debtor. Held: Operational creditor filed copies of account statement sent by corporate debtor to the operational creditor and as well as copy of the work order. Operational creditor also placed on record the bank statements of its bank. Through that, it was clear that corporate debtor defaulted in making payment of operational debt. Further, operational creditor complied with section 8 (1) and 9(3)(a), (b), (c) of the Code. However, no notice of dispute had been issued by the corporate debtor. Therefore, Operational creditor was entitled to file an application for initiation of corporate insolvency resolution process under section 9 of the Code. Hence, the petition was admitted.
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