Satec Envir Engineering (I) Pvt. Ltd vs Indian Oil Corporation Limited

Satec Envir Engineering India Pvt. Ltd. ...Appellant

Versus

Indian Oil Corporation Ltd. ...Respondent

Present: For Appellant: Mr. Abhirup Dasgupta, Ms. Mily Ghoshal and Ms. Mukta Halbe, Advocates. For Respondent: Mr. Amit Meharia, Ms. Tannishtha Singh and Mr. Sambhav, Advocates.

ORDER

19.07.2023: Sufficient cause being shown delay in filing the Appeal as

well as refiling is condoned.

2. This Appeal has been filed against the order dated 03.03.2023 passed

by the Adjudicating Authority rejecting Section 9 application filed by the

Appellant. Appellant filed Section 9 application claiming outstanding amount

of Rs.5,82,25,359/-. The Corporate Debtor has filed affidavit in reply and

opposed the petition. It was stated that there is contractual dispute between

the parties and contract was terminated. The Adjudicating Authority has held

that the work awarded to the Operational Creditor was terminated on

05.12.2018 and said termination took place prior to issuance of demand notice

dated 16.09.2019.

Cont'd../ -2-

3. Learned counsel for the Appellant submitted that there was no dispute

with regard to the fact that 80% work was complete, which is clear from the

reply of the Corporate Debtor dated 19.09.2019.

4. We have considered the submissions of the parties and perused the

record.

5. The work awarded to the Appellant - Operational Creditor was

terminated, as has been found by the Adjudicating Authority, on 05.12.2018.

The Demand Notice was issued on 16.09.2019. When the Demand Notice was

issued, it was replied by notice dated 19.09.2019 by the Corporate Debtor in

which counter demand was made against the Operational Creditor. The reply

notice dated 19.09.2019, which was issued in response to the Demand Notice

itself contain several correspondence and dispute between the parties. The

counter claim raised by the Corporate Debtor itself indicate that there are

dispute regarding contractual obligations and rights between the parties

which cannot be settled in a proceeding under Section 9 of I&B Code.

However, the Appellant is at liberty to take any such remedy as available under

the contract between the parties.

6. Learned counsel for the Appellant submits that the counter claim raised

by notice dated 19.09.2019 is much less than the claim which was made by

the Operational Creditor. We are of the view that the Corporate Debtor has

raised counter claim, which itself indicates dispute between the parties and

Company Appeal (AT) (Insolvency) No.859 of 2023 -3-

the Adjudicating Authority did not commit any error in dismissing the

application under Section 9. There is no merit in the Appeal, the Appeal is

dismissed.

[Justice Ashok Bhushan] Chairperson

[Barun Mitra] Member (Technical) Archana/nn

Company Appeal (AT) (Insolvency) No.859 of 2023