# In the matter of Pramod Kumar vs. Kalpataru Power Transmission Ltd. & Anr.

> NCLAT judgment dated 2023-08-21. Citation: TCN-2023-NCLAT-00265. The appeal was filed against the order dated 24.07.2023 admitting an application under…

- **Court:** NCLAT
- **Order date:** 21 Aug 2023
- **Citation:** TCN-2023-NCLAT-00265
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/pramod-kumar-vs-kalpataru-power-transmission-ltd-anr-15d1fccb

## Summary

### Background

The appeal was filed against the order dated 24.07.2023 admitting an application under Section 9 of the IBC. The suspended director of the Corporate Debtor challenged the admission order. The Corporate Debtor was a project management consultant for the construction of a hospital, namely Kalpana Chawla Government Medical College. The appellant argued that they were merely an agency for the principal employer and should not have been considered a Corporate Debtor for initiating insolvency proceedings. The respondent refuted these claims, stating that the Corporate Debtor was responsible for measurement and payment under the agreement, and payments had been made by the Corporate Debtor.

## Facts

An appeal was filed against the admission of an application under Section 9 of the IBC. The Corporate Debtor, Kalpataru Power Transmission Ltd., was a project management consultant for the construction of Kalpana Chawla Government Medical College. The appellant argued they were merely an agency and not liable for insolvency proceedings. The respondent refuted this, stating the Corporate Debtor was responsible for payments. The appellant offered to deposit the claimed amount. A settlement was reached between the parties on 17.08.2023. The court considered the settlement and the fact that an interim order had been passed. The suspended director of the Corporate Debtor challenged the admission order dated 24th July, 2023.

## Issues and analysis

### Issue 1: Whether the Appellant, acting as an agency for the principal employer, could be arrayed as a …

**Ratio:** The principle is that a Corporate Debtor must have a direct liability and cannot merely

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**Reasoning:** The Appellant argued that they were merely an agency for the principal employer and

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**Interpretation:** This issue concerns the interpretation of the definition of 'Corporate Debtor'

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**Application:** The court, in light of the settlement, did not explicitly rule on this issue

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## Parties

- **Judges:** Ashok Bh…; Barun M…; +1 more
- **Appellants:** PRAMOD…
- **Respondents:** Kalpataru Power…; M/s. Kalpataru…

## Timeline

- **2023-07-24 — Order Da…**: Order was passed admitting…
- **2023-07-31 — Appellate Tribu…**: Appellate Tribunal passed an…

## 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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