# In the matter of Gammon Engineers & Contractors Pvt. Ltd. vs. Sutanu Sinha

> NCLAT judgment dated 2024-01-16. Citation: TCN-2024-NCLAT-00686. This appeal challenges the order dated May 10, 2022, passed by the National Company Law…

- **Court:** NCLAT
- **Order date:** 16 Jan 2024
- **Citation:** TCN-2024-NCLAT-00686
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/gammon-engineers-contractors-pvt-ltd-vs-sutanu-sinha-a013faa7

## Summary

### Background

This appeal challenges the order dated May 10, 2022, passed by the National Company Law Tribunal, Principal Bench, New Delhi, which rejected the Appellant's application (I.A. No. 3954 of 2021) seeking the rejection of the Resolution Plan submitted by Respondent No. 3. The case involves a concession agreement between NHAI and Patna Highway Project Limited (Corporate Debtor) for the upgradation of the Hajipur Muzaffarpur Section of Existing NH-77. An EPC Agreement was executed between the Corporate Debtor and Gammon India Limited, later transferred to the Appellant through a scheme of arrangement. Disputes arose between the Appellant, Corporate Debtor, and NHAI, leading to non-completion of the project. The Appellant initiated arbitration, while the Corporate Debtor

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## Facts

National Highway Authority of India (NHAI) invited proposals for the upgradation of the Hajipur Muzaffarpur Section of Existing NH-77. A concession agreement was executed between NHAI and Patna Highway Project Limited-Corporate Debtor on 2010-02-24. An EPC Agreement was executed between the Corporate Debtor and Gammon India Limited for the upgradation of the Hajipur Muzaffarpur Section on 2011-02-22. A scheme of arrangement was entered between the Appellant and Gammon India Limited, which was approved by the National Company Law Tribunal by order dated March 22, 2017. After approval of the scheme of arrangement, the EPC Contract for the execution of the project stood transferred to the Appellant. Disputes arose between the Appellant, the Corporate Debtor, and NHAI,

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in rejecting the Appellant's application for rejection of …

**Ratio:** The commercial wisdom of the Committee of Creditors (CoC) is paramount in approving a

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**Reasoning:** The Tribunal relied on previous judgments, including the Supreme Court's decision in K.

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**Interpretation:** This reaffirms the principle that the CoC's decision-making in the resolution

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**Application:** The Tribunal applied this principle by deferring to the CoC's approval of the

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** GAMMON ENGINEERS…
- **Respondents:** Patna Highway…; SILVER POINT…

## Timeline

- **2010-02-24 — Concession Ag…**: Concession agreement executed between NHAI and Patna Highway Project Limited-Corporate…
- **2011-02-22 — EPC Agre…**: EPC Agreement executed between the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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