NCLT Dismisses Suwarna Buildcon Insolvency Petition Against Sadbhav

NCLT Ahmedabad dismissed an insolvency petition filed by Suwarna Buildcon against Sadbhav Engineering for a ₹41.12 crore operational debt claim.
The tribunal ruled the debt claim arose from a settlement agreement, not original operational dues, thus falling outside IBC's Section 9 scope.
The petition was also barred under Section 10A of the IBC as the enforceable default occurred during the COVID-19 moratorium period.
The bench found evidence of pre-existing disputes and characterized the petition as an impermissible recovery proceeding.