# In the matter of Pan India Infraprojects Pvt. Ltd. CP(IB) NO.2815(MB)-2019

> NCLT judgment dated 2020-07-16. Citation: TCN-2020-NCLT-01013. Garg Enterprises filed a Company Petition against Pan India Infra projects (P) Ltd, the…

- **Court:** NCLT
- **Order date:** 16 Jul 2020
- **Citation:** TCN-2020-NCLT-01013
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/pan-india-infraprojects-pvt-ltd-cpib-no2815mb-2019-618814a0

## Summary

### Background

Garg Enterprises filed a Company Petition against Pan India Infra projects (P) Ltd, the Corporate Debtor, under Section 9 of the Insolvency & Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP). The petition alleges that the Corporate Debtor defaulted in making payment to the extent of Rs. 5,59,38,928/-. The Corporate Debtor was the allottee of a road construction project and approached the Petitioner for the supply of construction material. The Petitioner supplied materials for Rs. 13,59,23,574/-, and the Corporate Debtor made payments of Rs. 8,76,73,843/-, leaving an outstanding balance of Rs. 4,82,49,731/-. The Petitioner claimed interest at 12% p.a. on outstanding invoices, totaling Rs. 76,89,197/- as of 01.07.2019.

## Facts

Garg Enterprises, the Petitioner, supplied construction materials to Pan India Infra projects (P) Ltd, the Corporate Debtor, for a road construction project. The total value of materials supplied was Rs. 13,59,23,574/-. The Corporate Debtor made payments totaling Rs. 8,76,73,843/-, leaving an outstanding principal balance of Rs. 4,82,49,731/-. The Petitioner claimed interest at 12% p.a. on the outstanding invoices, amounting to Rs. 76,89,197/- as of 01.07.2019, bringing the total claim to Rs. 5,59,38,928/-. The Petitioner issued a demand notice on 04.06.2019. The Corporate Debtor replied on 19.06.2019, disputing the debt, citing vagueness of the demand notice, quality issues with the materials, and disputes relating to reconciliation of accounts. Emails exchanged

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted in making …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016 allows an operational creditor to

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**Reasoning:** The NCLT found that the Corporate Debtor had failed to make full payment for the

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**Interpretation:** The existence of an operational debt and a default in its payment are

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**Application:** The NCLT applied the provisions of Section 9 to the facts of the case, finding

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## Parties

- **Judges:** Smt Suchitra…; V. Nallasen…
- **Appellants:** Garg Enter…
- **Respondents:** Pan India Infra…; PAN INDIA INFRA…
- **Advocates:** Anuja Bha…; Shyam Ka…; +1 more

## Timeline

- **2019-06-04 — Demand Notice…**: The Petitioner issued a demand notice in Form 3 to the Corporate Debtor, demanding…
- **2019-06-19 — Reply to Deman…**: The Corporate Debtor sent a reply to the demand notice, disputing the debt and raising…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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