Ncc Ltd vs Saptarishi Hotels Pvt. Ltd

NCC Limited ...Appellant

Vs

Saptrishi Hotels Pvt. Ltd. ....Respondent

Present: For Appellant: Mr. Abir Roy and Mr. Ishaan Chakrabarti, Advocates. For Respondent:

ORDER

14.10.2019: The Appellant - 'NCC Limited' preferred application under

Section 9 of the Insolvency and Bankruptcy Code, 2016 (for short 'I&B Code') for

initiation of Corporate Insolvency Resolution Process against 'Saptrishi Hotels

Pvt. Ltd.' (Corporate Debtor). The Adjudicating Authority (National Company

Law Tribunal), Hyderabad Bench, Hyderabad rejected the application by

impugned order dated 20th August, 2019 on the ground of pre-existence of

dispute.

2. Learned counsel for the Appellant submits that there is no pre-existing

dispute. But from the record we find that it is not disputed that Terms of

Agreement dated 1st November, 2011 with regard to purported admitted dues no

amount was paid by the Corporate Debtor and the Appellant moved before the

Engineer, who was required to decide the dispute. According to learned counsel

for the Appellant, such process of alternative forum has failed. But that cannot -2-

be a ground to invoke Corporate Insolvency Resolution Process under I&B Code

since as per Terms of Agreement dated 1st November, 2011 there is an alternative

forum which was chosen by the parties to settle dispute. The Appellant could

have moved before a Court of Law of competent jurisdiction.

3. In the aforesaid background, in view of the pre-existing dispute, we also

agree that application under Section 9 of I&B Code was not maintainable. The

appeal is dismissed. No cost.

[Justice S. J. Mukhopadhaya] Chairperson

[Justice A. I. S. Cheema] Member (Judicial)

(Kanthi Narahari) Member (Technical) am/gc

Company Appeal (AT) (Insolvency) No. 1032 of 2019