Under Section 9 of the IBC, 2016 In the matter of S.J ENTERPRISES a partnership firm through its partners Mr. Shantilal Parekh & Mr. Jaysukh Patel …Operational Creditor v/s.

M/s. OASIS INFRA-VENTURES PVT LTD.

Through its directors Nagraj Tolaji Mutha, Anil Nagraj Mutha and Yash Ritesh Mutha …Corporate Debtor Order Delivered on: 10.08.2023.

Coram:

Mr. Prabhat Kumar Mr. Kishore Vemulapalli Hon’ble Member (Technical) Hon’ble Member (Judicial)

Appearances (via videoconferencing):

For the Operational Creditor: None.

For the Corporate Debtor: Yash Jariwala, Ld. Counsel.

ORDER

Per: Prabhat Kumar, Member(Technical)

1. This is a Company Petition filed under section 9 of the Insolvency &

Bankruptcy Code, 2016 (IBC) by S.J ENTERPRISES a partnership firm through its partners Mr. Shantilal Parekh & Mr. Jaysukh Patel (“the Operational Creditor”), seeking initiation of Corporate Insolvency Resolution Process (CIRP) in the matter of M/s. OASIS INFRA-VENTURES PVT LTD. through its directors Nagraj Tolaji Mutha, Anil Nagraj Mutha and Yash Ritesh Mutha, the Corporate Debtor.

1.1. The Company Petition is filed on 24/02/2020 claiming an amount of Rs.

1,83,69,021/- (debt fell due on 20.04.2019) being the principal amount and the retention money alongwith Rs. 25,00,00,000/- towards compensation, and interest @ 18% p.a. Rs. 13,10,286 (as in calculated from 1^st October 2019 till realization) is in default. The date of default is not specified in Part IV of the petition.

2. The Corporate Debtor placed a Work Order dated 01.12.2015 for the work of civil and finishing work as labour contractor for a site project known as River View with the Operational Creditor. Pursuant to the completion of the work, a full and final bill was raised by the Operational Creditor by Invoice dated 20.04.2019 for an amount of Rs. 86,32,103/- (Rupees Eighty-Six Lakh Thirty- Two Thousand One Hundred and Three). Further RA Bill dated 20.04.2019 was raised for an amount of Rs. 50,33,653/- (Rupees Fifty Lakh Thirty-Three Thousand Six Hundred and Fifty-Three Only).

2.1. After the completion of the work, the Corporate Debtor sent a letter dated

05.08.2019 which was received by the Operational Creditor raising allegations regarding the quality of work done under the Work Order which the Corporate Debtor has not raised before. Further, vide letter dated 30.08.2019 the Operational Creditor cleared all the allegations so raised and put forth the actual facts and demanded payment of the outstanding dues.

2.2. Despite repeated reminders, Corporate Debtor failed to make the above Payment. Therefore, the Operational Creditor issued a demand notice dated 11.11.2019 u/s 8 of the Insolvency and Bankruptcy Code, 2016 requesting for outstanding amount. The Corporate Debtor failed to respond to the Statutory demand Notice within the mandatory 10 days period of receipt of the notice and also failed to make the payment of the outstanding dues within the said permitted period.

3. The Corporate Debtor vide its affidavit in reply dated 19.04.2023 states that the petitioner has not only carried out substandard and defective work, but also refused to rectify any defects as pointed out by the Corporate Debtor; the petitioner has raised bills amounting to Rs.2,07,18,255/- which were duly accepted and paid by the Corporate Debtor. Furthermore, the petitioner raised its final invoices on 20.04.2019 for the sum of Rs. 50,33,653/- against the same work which was never accepted by the Respondent on account of substandard and defective work being done by the petitioner; the Corporate Debtor had not given any approval for additional work; No default under IBC, the intention of the petitioner is to enforce recovery of some alleged debt against the respondent company; pre-existing dispute and material suppression of the fact.

Findings

4. This bench has perused the documents and pleadings available on record and considered the arguments of both the sides.

4.1 The Operational Creditor has claimed the debt in default which mainly compri