New Delhi, May 1 (Reporter) The National Company Law Appellate Tribunal (NCLAT) on Thursday rejected an appeal by Drilltech Engineers that challenged the Chandigarh Bench of the National Company Law Tribunal (NCLT) for refusing to initiate insolvency proceedings against real estate giant DLF Limited. The appellate bench, headed by Justice Ashok Bhushan (Chairperson) and comprising Technical Members Barun Mitra and Arun Baroka, observed that the matter involved serious and ongoing disputes between the parties that predated the insolvency notice, thus disqualifying the claim under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC). “The records clearly show a substantial exchange of communication indicating the presence of a genuine, long-standing commercial dispute. Such issues cannot be trivialised or ignored, nor can they be addressed through IBC proceedings,” the NCLAT stated in its judgment. Drilltech Engineers had approached the NCLT under Section 9 of the IBC, alleging non-payment of ₹4.65 crore (plus interest) for piling work carried out at DLF’s commercial project site in Panaji, Goa. However, DLF had, well before the issuance of the demand notice under Section 8 of IBC (dated July 1, 2022), raised repeated objections regarding the quality and timeliness of the work. A formal show cause notice dated June 21, 2022, cited defective performance and claimed a revenue loss of approximately ₹10 crore. The NCLT, in its order dated January 10, had dismissed Drilltech’s insolvency application, stating that insolvency mechanisms should not be used as tools to pressure repayment in the face of serious business disputes. The NCLAT affirmed this stance, reiterating that, “When there exists a legitimate pre-litigation disagreement, which is neither concocted nor superficial, insolvency under Section 9 is impermissible. Such matters should be adjudicated before a competent civil or arbitral forum.” Consequently, the appeal was dismissed, with the tribunal noting no procedural error in the lower court’s ruling. However, Drilltech Engineers was granted liberty to pursue alternate remedies as per law. Legal Representation for Drilltech Engineers was made by Senior Advocate P. Nagesh, with Advocates Rishabh Singh and S. Shiva And the DLF Limited was represented by Advocates Meghna Mishra, Ankit Rajgarhia, and Palak Sharma from Karanjawala & Co...////...