Matters related to non-payment for services rendered are not within the purview of insolvency proceedings under the IBC – Masprocon v. Prasad & Company (Project Works) Pvt. Ltd. – NCLT Hyderabad Bench
The Adjudicating Authority observes that this is evidently a case where the provisions of the Insolvency and Bankruptcy Code (IBC) are being invoked as a means of recovering a disputed debt amount, betraying the primary objective of the IBC to facilitate the resolution of insolvency for corporate entities. Matters related to non-payment for services rendered are not within the purview of insolvency proceedings under the IBC. To recover any outstanding dues, the Petitioner could have opted for legal recourse through the appropriate Civil Court, which holds jurisdiction to adjudicate the validity of the outstanding dues.
