The Ahmedabad Bench of the National Company Law Tribunal (NCLT) on 19 August dismissed an insolvency petition filed by A.R. Company against Sadbhav Engineering Limited over unpaid dues arising from the supply of road and building construction materials.
A Bench comprising Judicial Member Chitra Hankare and Technical Member Dr V.G. Venkata Chalapathy observed:
“The claim arising from the alleged breach of the MOU has to be pursued in accordance with the remedies contemplated under the MOU and cannot, in the circumstances of the present case, be treated as an operational debt arising from the original invoices for initiation of CIRP under Section 9 of the Code.”
A.R. Company, a supplier of road and building construction materials,…