# In the matter of Parsons Brinckerhoff India Pvt. Ltd. C.P. No. IB-809(ND)-2019

> NCLT judgment dated 2019-09-17. Citation: TCN-2019-NCLT-01440. FP India Project Management Consultancy Services Pvt. Ltd (Operational Creditor/Petitioner)…

- **Court:** NCLT
- **Order date:** 17 Sept 2019
- **Citation:** TCN-2019-NCLT-01440
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/parsons-brinckerhoff-india-pvt-ltd-cp-no-ib-809nd-2019-6bba4fad

## Summary

### Background

FP India Project Management Consultancy Services Pvt. Ltd (Operational Creditor/Petitioner) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 against Parsons Brinckerhoff India Pvt. Ltd (Corporate Debtor/Respondent) for alleged default in settling an amount of Rs. 2,81,07,882/- towards services offered by the petitioner. The Operational Creditor claimed to have provided architectural and design consultancy services to the Corporate Debtor, who was appointed by TTA JV for the Chennai Metro Project. Disputes arose regarding variations in the work and payment, leading to the Operational Creditor issuing a demand notice under Section 8(1) of the IBC, which was replied to by the Corporate Debtor.

## Facts

In December 2010, Chennai Metro Limited awarded the work of executing two packages (Design and Build contact) namely UAA01 and UAA05 of Chennai Metro Project to Transtonnelstory- AFCONS Joint Venture (TTA JV). In August 2011, TTA JV appointed Parsons Brinckerhoff India Pvt. Ltd (PBI), the respondent, as their design consultants. On 22.09.2011, PBI executed an Architectural Associate Consultancy Agreement appointing FP India Project Management Consultancy Services Pvt. Ltd (FPI), the applicant, as their Architectural and Design Consultants. According to the agreement, FPI was to receive payment within 15 working days after PBI received payment from TTA JV. In July 2014, PBI asked FPI to assess the time and cost impact of variations. In August 2014, FPI submitted the

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## Issues and analysis

### Issue 1: Whether the application under Section 9 of the …

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

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**Reasoning:** The Tribunal noted that the applicant had provided services to the respondent and had

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**Interpretation:** Section 9 of the IBC provides a mechanism for operational creditors to recover

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**Application:** The Tribunal found that the debt was proved to be due, there was a default, and

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## Parties

- **Judges:** P.S.N. P…; V.K. SUB…
- **Appellants:** FP India Project…
- **Respondents:** Parsons Brinckerho…

## Timeline

- **2010-12-01 — Award of…**: Chennai Metro Limited awarded work to…
- **2011-08-01 — Appointment of Design…**: TTA JV appointed Parsons Brinckerhoff India…

## 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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