The NCLT in its detailed judgment dated January 10 found that DLF had raised repeated concerns about quality, delay and site conduct starting as early as December 2021, much before Drilltech issued the statutory demand notice under Section 8 of IBC on July 1, 2022.
DLF had also issued a formal show cause notice on June 21, 2022 – 10 days before the demand notice – stating that Drilltech’s work was defective and that the company intended to recover approximately ₹10 crore in revenue losses due to delayed and defective piling.
The NCLT had concluded that these facts showed a clear pre-existing dispute. The NCLT, therefore, dismissed the plea noting that insolvency proceedings are barred where there exists a genuine, pre-litigation dispute.
