# In the matter of Amma Construction India Private Limited

> NCLT judgment dated 2023-09-08. Citation: TCN-2023-NCLT-01750. The case originates from a petition filed on 2022-03-28 under Section 9 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 8 Sept 2023
- **Citation:** TCN-2023-NCLT-01750
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/amma-construction-india-private-limited-7278ee02

## Summary

### Background

The case originates from a petition filed on 2022-03-28 under Section 9 of the Insolvency and Bankruptcy Code, 2016, by J Rajendra Naidu (Operational Creditor/Petitioner) against M/s. Amma Construction India Private Limited (Corporate Debtor/Respondent). The petitioner sought to initiate Corporate Insolvency Resolution Process (CIRP) due to an alleged default of Rs. 1,41,31,275/-. The Corporate Debtor had entered into a subcontract agreement with HEC India LLP for installation of fence and other works at KIA Motors, and further subcontracted the said work to the Operational Creditor. Work orders were issued, and the Operational Creditor raised running account (RA) bills. Disputes arose regarding payments, leading to the petition.

## Facts

J Rajendra Naidu, the Operational Creditor/Petitioner, filed a petition against M/s. Amma Construction India Private Limited, the Corporate Debtor/Respondent, under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor had entered into a subcontract agreement with HEC India LLP for installation of fence and other works at KIA Motors, and further subcontracted the said work to the Operational Creditor. A work order dated 2018-09-12 was placed for the Petitioner to provide and fix fence work at the KIA work site. The Petitioner raised five running account (RA) bills between 2018-11-15 and 2019-05-31. The Respondent made a payment of Rs. 15,00,000 against the first RA bill, leaving a

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## Issues and analysis

### Issue 1: Whether the outstanding amount, including interest, exceeds the threshold of Rs. 1 crore as …

**Ratio:** The legal principle is that the threshold requirement under Section 4 of the IBC must be

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**Reasoning:** The Tribunal scrutinized the invoices, payments, and agreements to determine the actual

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**Interpretation:** The interpretation of Section 4 of the IBC is that the threshold requirement is

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**Application:** In this case, the Tribunal found that the outstanding amount was below Rs. 1

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## Parties

- **Judges:** T. Krishn…; Manoj Kumar…
- **Appellants:** J Rajendra…
- **Respondents:** M/s Amma Construct…

## Timeline

- **2017-10-01 — Subcontract A…**: The Corporate Debtor, Amma Constructions India Private Limited, entered into a…
- **2018-02-23 — Subcontract A…**: The corporate debtor further subcontracted…

## 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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