(2023) ibclaw.in 1057 NCLT
IN THE NATIONAL COMPANY LAW TRIBUNAL
Hyderabad Bench
Masprocon
v.
Prasad & Company (Project Works) Pvt. Ltd.
CP (IB) No. 130/09/HDB/2021
Decided on 19-Dec-23
Coram: Coram: Shri Rajeev Bhardwaj (Judicial Member) and Shri Sanjay Puri (Technical Member)Â
Add. Info:
Corporate Debtor: Prasad & Company (Project Works) Pvt. Ltd.
For Appellant(s): Mr. K. Ravichandra Mohan, Advocate
For Respondent(s): Mr. Alluri Krishnam Raju, Advocate
Brief about the decision:
This Application is filed by M/s. Masprocon, (the Petitioner) seeking to initiate CIRP against M/s. Prasad & Company (Project Works) Pvt. Ltd. (the Respondent), for the alleged default in discharging the debt that is due to the Petitioner.
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. As a result, the Petition is dismissed with costs.(p35)
Judgment/Order:
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