# In the matter of Gammon India Limited CP (IB) No.3637-MB.IV-2018

> NCLT judgment dated 2020-07-16. Citation: TCN-2020-NCLT-01019. This case involves a Company Petition filed under Section 9 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 16 Jul 2020
- **Citation:** TCN-2020-NCLT-01019
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/gammon-india-limited-cp-ib-no3637-mbiv-2018-e1c84756

## Summary

### Background

This case involves a Company Petition filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) by M/s Shree Dev Chemicals Corporation (Operational Creditor) against Gammon India Limited (Corporate Debtor) to initiate the Corporate Insolvency Resolution Process (CIRP). The Operational Creditor claimed that the Corporate Debtor failed to pay a sum of ₹7,86,237.68, which was due as of 23.06.2015. The petition was filed on 25.09.2018.

## Facts

M/s Shree Dev Chemicals Corporation, an Operational Creditor, filed a Company Petition against Gammon India Limited, the Corporate Debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016. The Operational Creditor claimed that the Corporate Debtor failed to make payment of ₹7,86,237.68, which was due as of 23.06.2015. The Operational Creditor had supplied construction chemicals to the Corporate Debtor based on purchase orders placed in 2012, 2013, and 2014, and issued invoices accordingly. The Corporate Debtor consumed the materials without raising any disputes regarding their quality. The Operational Creditor served a Demand Notice dated 18.06.2018 to the Corporate Debtor. The Corporate Debtor, in its reply dated 21.12.2018, argued that the petition was not

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## Issues and analysis

### Issue 1: Whether the application filed under Section 9 of the IBC is maintainable despite the Operational …

**Ratio:** Section 69(2) of the Indian Partnership Act, 1932, states that no suit to enforce a right

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**Reasoning:** The court reasoned that the provision of Section 69(2) of the Indian Partnership Act,

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**Interpretation:** The court interpreted that the bar under Section 69(2) of the Indian

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**Application:** The court applied this interpretation to the case, holding that the application

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## Parties

- **Judges:** Rajasekha…; RavikumarDu…
- **Appellants:** M/s Shree Dev…
- **Respondents:** Gammon India…

## Timeline

- **1922-06-15 — Incorporation of…**: Gammon India Limited was…
- **2012-09-21 — Purchase Order by…**: The Corporate Debtor placed a purchase order on the Operational Creditor for the supply…

## 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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