# In the matter of Gammon Infrastructure Projects Ltd. Vs. AF Consult India Pvt. Ltd. & Anr CA(AT)(Ins)No. 825 of 2020

> NCLAT judgment dated 2020-09-28. Citation: TCN-2020-NCLAT-00099. This is a Company Appeal (AT) (Insolvency) No. 825 of 2020 before the National Company Law…

- **Court:** NCLAT
- **Order date:** 28 Sept 2020
- **Citation:** TCN-2020-NCLAT-00099
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/gammon-infrastructure-projects-ltd-vs-af-consult-india-pvt-ltd-anr-ca-14bcebfc

## Summary

### Background

This is a Company Appeal (AT) (Insolvency) No. 825 of 2020 before the National Company Law Appellate Tribunal, New Delhi. The appeal concerns an order admitting an application by Respondent No. 1 (Operational Creditor) under Section 9 of the I&B Code. The Appellant contends that the debt, for which default occurred on January 14, 2015, is barred by limitation, and the Corporate Debtor had raised a dispute regarding the quality and execution of the agreement.

## Facts

Gammon Infrastructure Projects Ltd. filed an appeal against the order admitting the application of AF Consult India Pvt. Ltd. (Respondent No. 1), an operational creditor, under Section 9 of the I&B Code. The appellant, Gammon Infrastructure Projects Ltd., argues that the debt, with a default date of January 14, 2015, is barred by limitation. Furthermore, the Corporate Debtor claims to have raised a dispute regarding the quality and execution of the agreement. The court issued notices to the respondents, which were waived by their respective advocates. The Interim Resolution Professional (IRP) is directed to ensure the company remains a going concern and to take assistance from the suspended Board of Directors. The Corporate Debtor is required to cooperate with the IRP.

## Issues and analysis

### Issue 1: Whether the application under Section 9 of the I&B Code is unsustainable due to the debt being …

**Ratio:** The principle of limitation dictates that legal actions must be initiated within a

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**Reasoning:** The appellant contends that the default occurred on January 14, 2015, and the application

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**Interpretation:** The interpretation of the limitation period under the I&B Code and the

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**Application:** If the court finds that the default occurred on January 14, 2015, and no valid

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## Parties

- **Judges:** Bansi Lal…; Jarat Kuma…
- **Respondents:** Gammon Infrastruct…; AF Consult India…

## Timeline

- **2015-01-14 — Default…**: Alleged date of default…
- **2020-09-28 — Order Da…**: Court issued notice to respondents and directed IRP to ensure company remains a going…

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