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Judgment
O R D E R
Sufficient cause being shown delay in filing the Appeal as well as refiling is condoned.
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.
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.
We have considered the submissions of the parties and perused the record.
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.
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 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.