Non Issuance Of Completion Certificate Amounts To Pre Existing Dispute: NCLAT New Delhi

It was contended on behalf of the Operational Creditor that it has provided various services to the Respondent such as trenching, ducting, etc and an amount of INR 8.29 Crores is due and payable by the Respondent to the Appellant.

On the contrary, it was contended on behalf of the Respondent company that no amount is due and payable by the Respondent and furthermore, the Respondent issued the notice invoking arbitration before the receipt of the demand notice.

After hearing the parties, the NCLT dismissed the Section 9 petition on the ground that the Respondent has invoked arbitration and thus there is a pre-existing dispute.

The NCLAT observed that the Respondent had specifically relied upon the Arbitration clause in the contract in its reply to Section 8 notice and also to Section 9 Petition. It further observed that the notice invoking arbitration was sent on 22.01.2022 whereas the Section 8 demand notice though dated 12.01.2021 was only issued on 25.01.2021.

The Bench further held that when the Completion Certificate regarding Work Order was never issued which clearly indicated that the there is a pre existing dispute between the parties.

NCLAT dismissed the appeal field by the Appellant with a liberty to pursue its claim in the Arbitration.

Case Details: Navkar Urbanstructure Ltd v. Niyojit Infratech Pvt. Ltd.

Counsel for Appellant: Mr. Pavan Godiwala& Mr. MS Vishnu Sankar.

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