Authority: National Company Law Tribunal, Chandigarh Bench (Court-II)

Order Date: 11 June 2026

Case Overview

The application was filed by Superwave Communication and Infrasolution Private Limited (Operational Creditor) under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) against Rayways Infra Projects Private Limited (Corporate Debtor) for a default of ₹1,22,33,029. The date of default was stated as 04.01.2024.

The dispute arose from a Project Work Order (No. 0125-2023) dated 12.10.2023, issued by Rayways to Superwave for work on the Ahmednagar Bypass project in Maharashtra. Superwave supplied and installed goods, raising invoices totaling ₹1,82,32,029. After a part payment of ₹60,00,000 made on 14.11.2023, a balance of ₹1,22,33,029 remained unpaid. The Operational Creditor issued a demand notice under Section 8 of the IBC on 16.04.2024, which was acknowledged by the Corporate Debtor via email on 19.04.2024.

The Corporate Debtor contested the application on several grounds: (1) improper service of the demand notice, as the physical copy was returned undelivered; (2) lack of authorization of Mr. Anshuman Singh to file the petition; (3) existence of a pre-existing dispute, citing the issuance of credit notes in December 2023 that allegedly nullified the invoices; (4) failure by Superwave to complete the project, making them liable for penalties; and (5) a counter-claim of ₹2.08 crore against the Operational Creditor.

The Tribunal analyzed three main issues: service of the demand notice, existence of debt and default, and the existence of a pre-existing dispute. It found that service via email to the Corporate Debtor's registered address and its CEO (a Key Managerial Personnel) was valid, especially since the Corporate Debtor had acknowledged receipt. The existence of debt and default was established by the Work Order, invoices, and the part payment of ₹60 lakhs, which indicated an acknowledgment of liability. On the critical issue of a pre-existing dispute, the Tribunal applied the test from the Mobilox Innovations case. It found the Corporate Debtor's defense—based on credit notes and allegations of poor quality—to be a "moonshine defence" unsupported by contemporaneous evidence. The email from the Corporate Debtor dated 03.02.2024, asking Superwave to complete the work, was inconsistent with its claim that the material had been lifted and the contract reversed in December 2023.

Final Outcome

The application was admitted, and the Corporate Insolvency Resolution Process (CIRP) was initiated against Rayways Infra Projects Private Limited. A moratorium under Section 14 of the IBC was declared with immediate effect. Mr. Atul Deep Gupta (IBBI Registration No.: IBBI/IPA-003/IPA-ICAI-N-00479/2025-2026/14574) was appointed as the Interim Resolution Professional (IRP). The Operational Creditor was directed to pay an advance of ₹3,00,000 to the IRP within two weeks for the smooth conduct of the CIRP.

Topics: Corporate Insolvency, Operational Debt, NCLT Proceedings