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IN THE NATIONAL COMPANY LAW TRIBUNAL AHMEDABAD COURT -2 ITEM No.301 C.P. (IB)/T2(AHM)2024 Proceedings under Section 9 IBC IN THE MATTER OF:

M/s. AR.Company Applicant V/s M/s.Sadbhav Engineering Limited .. Respondent Order delivered on: 19/08/2026 Coram:

Mrs. Chitra Hankare, Hon’bie Member(J)

Dr. Velamur G Venkata Chalapathy, Hon’ble Member(T)

ORDER This case is fixed for pronouncement of order The order is pronounced in open court vide separate sheet —c e Sel/-

DR. V. G. VENKATA CHALAPATHY CHITRA HANKARE MEMBER (TECHNICAL) MEMBER (JUDICIAL)

AD/S}/ AP

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IN THE NATIONAL COMPANY LAW TRIBUNAL AHMEDABAD (COURT - II)

(Application under Section 9 Read with rule 6 of the Insolvency and Bankruptcy Rules, 2016)

In the matter of:

M/S. A. R. COMPANY Through its Partner Shri Ved Pal son of Shri Rishal Singh Having its office at Shop No. 158, 2-3, Part, Near Jaat Bhawan, Rohtak, Haryana 124001 eeens Petitioner/

Operational Creditor Versus M/S. Sadbhav Engineering Limited Registered Office: Sadbhav House Opposite Law Garden Police Chowki Ellis Bridge, Ahmedabad 380 006, Gujarat evees Respondent/ Corporate Debtor Order pronounced on 19.08.2026 Coram:

MRS. CHITRA HANKARE HON’BLE MEMBER (JUDICIAL)

MR. VELAMUR G VENKATA CHALAPATHY HON’BLE MEMBER (TECHNICAL)

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Present:

For the Petitioner : Mr. Praveen Kumar Aggarwal, Adv.

For the Respondent : Mr. Navin Pahwa, Sr. Adv and Mr. Ravi Pahwa, Adv.

JUDGEMENT

1. This application is filed by the Operational Creditor viz, M/s. A.R.

Company, through its Partner Mr. Ved Pal under Section 9 of Insolvency and Bankruptcy Code, 2016 seeking initiation of Corporate Insolvency Resolution Process (CIRP) as against the Corporate Debtor viz. M/s. Sadbhav Engineering Limited for having default of an amount of Rs. 5,08,63,621.59/- along with up to date interest from 01.12.2023.

2. The Applicant submits that it is engaged in the business of trading and supply of road and building construction materials and had supplied materials to the Corporate Debtor between 31.12.2016 to 09.03.2019, raising 5735 invoices aggregating to Rs. 21,26,67,501/- . It is submitted that while the Corporate Debtor made part-payments amounting to Rs. 19,31,80,942/- it failed to discharge its liability of Rs. 1,94,86,559/- in respect of 753 invoices raised between 22.05.2018 and 09.03.2019. It is submitted that being aggrieved by the default, the Applicant approached the Haryana Micro and Small Enterprises — S5 Page 2 of 16 = s Facilitation Council (HMSEFC) vide application dated 07.01.2021 on MSME Samadhan Portal, being a registered Micro Enterprise. The HMSEFC, vide Award dated 18.11.2022, awarded a sum of Rs. 1,94,86,559/ along with interest, costs and expenses in favour of the Applicant. It is submitted that no appeal was preferred against the said Award within the prescribed period and, therefore, the Award has attained finality. The Applicant further submits that though the invoices stipulated interest at 18% per annum, the HMSEFC awarded interest at 22.25% per annum, which has accordingly been claimed in the present petition.

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. The Applicant further submits that after the Award, the Corporate Debtor acknowledged its liability and expressed its inability to make payment of the awarded amount in one lump sum, requesting that the dues be paid in eight monthly installments. It is submitted that pursuant to which a Memorandum of Settlement dated 31.03.2023 was executed whereby the Corporate Debtor agreed to make staggered payments up to 29.02.2024. It is submitted that the Corporate Debtor failed to adhere to the agreed payment schedule and made only a single payment of Rs. 10,00,000/- on 30.06.2023, which was appropriated towards accrued interest. It is submitted Sd /-

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that upon default in payment of the installments, the Applicant issued a legal notice dated 17.08.2023 -calling upon the Corporate Debtor to regularize the payment schedule. It is submitted that Memorandum of Settlement dated 3

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