# In the matter of Relcon Infraprojects Limited CP (IB) 3980-MB-C-IV-2018

> NCLT judgment dated 2020-01-01. Citation: TCN-2020-NCLT-02592. M/s NN Enterprises, an operational creditor, filed a Company Petition under Section 9 of the…

- **Court:** NCLT
- **Order date:** 1 Jan 2020
- **Citation:** TCN-2020-NCLT-02592
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/relcon-infraprojects-limited-cp-ib-3980-mb-c-iv-2018-1bf27a2c

## Summary

### Background

M/s NN Enterprises, an operational creditor, filed a Company Petition under Section 9 of the Insolvency & Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Relcon Infra Projects Limited, the corporate debtor. The operational creditor claimed non-payment of dues for Ready Mix Concrete (RMC) supplied to the corporate debtor. The corporate debtor disputed the claim, alleging interconnected business dealings and set-off arrangements with the operational creditor and other related entities.

## Facts

M/s NN Enterprises, an unregistered partnership firm, claimed that Relcon Infra Projects Limited owed them ₹32,96,390 as principal and ₹11,20,772 as interest for supplied Ready Mix Concrete (RMC). The Operational Creditor raised multiple invoices between April and June 2016. The Corporate Debtor acknowledged accepting the RMC but claimed a set-off arrangement due to interconnected business dealings with Sarneshwar Infra Private Limited and Technotrade Impex India Private Limited, entities linked to a partner of the Operational Creditor, Mr. Natwarlal Purohit. The Corporate Debtor argued that Mr. Purohit represented that the Corporate Debtor should purchase material from the Operational Creditor equivalent to the amount owed by Sarneshwar Infra and Technotrade,

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## Issues and analysis

### Issue 1: Whether an unregistered partnership firm can maintain a petition under the Insolvency and …

**Ratio:** Section 69(2) of the Indian Partnership Act, 1932, bars an unregistered firm from

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**Reasoning:** The NCLT relied on the Hon'ble Supreme Court's judgment in Sagar Sharma vs Phoenix ARC

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**Interpretation:** The term 'suit' in Section 69(2) of the Indian Partnership Act does not

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**Application:** The NCLT held that Section 69(2) of the Indian Partnership Act, 1932, applies

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## Parties

- **Judges:** Rajasekha…; RavikumarDu…
- **Appellants:** M/s NN Ente…
- **Respondents:** Relcon Infra…
- **Advocates:** Gouresh C…; Chirag Sa…; +3 more

## Timeline

- **2016-04-08 — Invoice R…**: Invoice No.00001 raised…
- **2016-04-14 — Invoice R…**: Invoice No.00011 raised…

## 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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