# In the matter of International Road Dynamics South Asia Pvt. Ltd. Vs. Reliance Infrastructure Ltd. CA (AT) Nos. 72 & 77-2017

> NCLAT judgment dated 2017-08-01. Citation: TCN-2017-NCLAT-00147. The case involves two company appeals (AT) (Insolvency) No. 72 of 2017 and No. 77 of 2017. In…

- **Court:** NCLAT
- **Order date:** 1 Aug 2017
- **Citation:** TCN-2017-NCLAT-00147
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/international-road-dynamics-south-asia-pvt-ltd-vs-reliance-infrastructure-ltd-ca-5ef738ec

## Summary

### Background

The case involves two company appeals (AT) (Insolvency) No. 72 of 2017 and No. 77 of 2017. In appeal No. 72, International Road Dynamics South Asia Pvt. Ltd. challenged an order dated 29th March, 2017, passed by the Adjudicating Authority (National Company Law Tribunal, Mumbai Bench, Mumbai), which rejected the appellant's application under Section 9 of the Insolvency & Bankruptcy Code, 2016 (I&B Code). In appeal No. 77, a similar application under Section 9 of the I&B Code preferred by the same appellant against 'Corporate Debtor' – D.A. Toll Road Pvt. Ltd. was rejected by the Adjudicating authority, Mumbai Bench, Mumbai by the impugned order dated 3rd April, 2017. The appeals were heard together and disposed of by a common judgment.

## Facts

International Road Dynamics South Asia Pvt. Ltd. filed applications under Section 9 of the Insolvency & Bankruptcy Code, 2016 against Reliance Infrastructure Ltd. and D.A. Toll Road Pvt. Ltd., seeking initiation of Insolvency Resolution Process (IRP). The Adjudicating Authority (National Company Law Tribunal, Mumbai Bench, Mumbai) rejected both applications. The appellant challenged these rejections. Regarding Reliance Infrastructure Ltd., the appellant claimed outstanding dues from three different projects arising out of three separate work orders. The appellant's notice dated 21st January, 2017, under Section 8, showed that the total payment made by Reliance Infrastructure Ltd. for 'GF Toll Project' was Rs. 5,41,07,993/-, with the last payment of Rs. 1,06,55,322

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority was correct in rejecting the application under Section 9 of the …

**Ratio:** An 'alternative remedy of arbitration' cannot be a ground to reject an application under

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**Reasoning:** The court held that the existence of an arbitration clause or the solvency of the

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**Interpretation:** This clarifies that the availability of arbitration or the financial health of

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**Application:** Even if there was an arbitration clause in the agreement or the corporate

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## Parties

- **Judges:** S.J. Mukhop…; Balvinder…
- **Appellants:** International…
- **Respondents:** Reliance Infrastru…

## Timeline

- **2017-01-21 — Notice issued under…**: Appellant issued a notice under Section 8 to Reliance Infrastructure Ltd. claiming…
- **2017-03-29 — Order by Adjudicating…**: The Adjudicating Authority passed an order rejecting the application under Section 9 of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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