# In the matter of Gati Infrastructure Private Limited CA No. 28 of 2018 with CP (IB) No. 227-9-HDB-2017

> NCLT judgment dated 2021-04-26. Citation: TCN-2021-NCLT-02305. The case involves an application under Section 9 of the Insolvency and Bankruptcy Code (IBC),…

- **Court:** NCLT
- **Order date:** 26 Apr 2021
- **Citation:** TCN-2021-NCLT-02305
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/gati-infrastructure-private-limited-ca-no-28-of-2018-with-cp-ib-no-227-9-hdb-201-0f7eb9d7

## Summary

### Background

The case involves an application under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, filed by SEW & Prasad - Joint Venture (Operational Creditor) against Gati Infrastructure Private Limited (Corporate Debtor). The Operational Creditor claimed a default of Rs. 31,40,37,776/- (including interest) as of 03.08.2017, arising from an agreement for execution of civil and hydro-mechanical works for the Chuzachen Hydro Electric Power Project in Sikkim. Disputes arose regarding the execution of work, cost overrun, and payment of RA Bills, leading to a Settlement Agreement dated 14.12.2013. The Corporate Debtor paid Rs. 10 crores as per the agreement, but disputes persisted regarding the remaining amount. The Operational Creditor issued a Demand Notice, which

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## Facts

SEW & Prasad - Joint Venture (Operational Creditor) and Gati Infrastructure Private Limited (Corporate Debtor) entered into an agreement on 12.08.2006 for the execution of civil and hydro-mechanical works for the 99 MW Chuzachen Hydro Electric Power Project in Sikkim. The project was commissioned on 11.03.2013. Disputes arose regarding the execution of work, cost overrun, and payment of RA Bills. A Settlement Agreement was signed on 14.12.2013, where the Corporate Debtor agreed to pay Rs. 33.98 crores. The Corporate Debtor paid Rs. 10 crores on 24.12.2013. The balance amount of Rs. 23.98 crores was to be paid by Amrit Jal Ventures Pvt Ltd (AJVPL), the promoter of the Corporate Debtor, in 12 equated monthly installments. AJVPL paid Rs. 4,38,62,120/- and failed to

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## Issues and analysis

### Issue 1: Whether the petition has been filed …

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

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**Reasoning:** The Adjudicating Authority relied on an e-mail communication dated 21.01.2015 from the

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**Interpretation:** The interpretation of Section 18 of the Limitation Act, which deals with the

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**Application:** The e-mail communication, sent on 21.01.2015, was deemed an acknowledgment of

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## Parties

- **Judges:** Bhaskara Pantula…; Veera Brahma Rao…
- **Appellants:** Sew & Prasad…
- **Respondents:** M/s Gati Infrastru…

## Timeline

- **2006-08-12 — Agreement for Execution…**: Agreement between SEW & Prasad and Gati Infrastructure for execution of civil and…
- **2013-03-11 — Project Commi…**: The Chuzachen Hydro Electric…

## 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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