# In the matter of B E Billimonia & Company Limited

> NCLT judgment dated 2024-01-19. Citation: TCN-2024-NCLT-02991. This case involves a Company Petition (CP (IB) No. 838/MB-VI/2019) filed by Suresh Gupta…

- **Court:** NCLT
- **Order date:** 19 Jan 2024
- **Citation:** TCN-2024-NCLT-02991
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/b-e-billimonia-company-limited-cc962d26

## Summary

### Background

This case involves a Company Petition (CP (IB) No. 838/MB-VI/2019) filed by Suresh Gupta (Operational Creditor - OC) against B.E. Billimoria & Company Limited (Corporate Debtor - CD) under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP). The OC claimed default on a settlement agreement dated 09.02.2017, where the CD was to pay Rs. 2,05,43,208/- in six installments. The OC alleged a total default amount of Rs. 1,36,95,472/-. The CD contested the application, citing pre-existing disputes, inefficient service by the OC, and arguing that unpaid installments of a settlement agreement cannot be treated as an operational debt.

## Facts

Suresh Gupta (Operational Creditor - OC) filed a petition against B.E. Billimoria & Company Limited (Corporate Debtor - CD) under Section 9 of the Insolvency and Bankruptcy Code, 2016. The OC claimed that the CD defaulted on a settlement agreement dated 09.02.2017. The settlement agreement was related to construction projects for the Delhi Commonwealth Games, 2010. The OC was appointed by the CD to monitor, supervise, manage, coordinate, and complete the construction contract. The total amount of default claimed by the OC was Rs. 1,36,95,472/-, based on the settlement agreement where the CD was to pay Rs. 2,05,43,208/- in six equal installments. The date of default was mentioned as 01.10.2017. The CD contended that there were pre-existing disputes, inefficient

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## Issues and analysis

### Issue 1: Whether the claim in respect of a settlement agreement can be regarded as an operational debt …

**Ratio:** The definition of 'operational debt' cannot be interpreted widely so as to include any

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**Reasoning:** The NCLT relied on the decision of the Hon'ble NCLAT Bench Chennai in Maulik Kirtibhai

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**Interpretation:** Section 5(21) of the IBC defines 'operational debt' as a claim in respect of

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**Application:** In this case, the NCLT determined that the debt arose from a settlement

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## Parties

- **Judges:** K. R. SAJI…; SANJIV…
- **Appellants:** Suresh…
- **Respondents:** B.E. Billimoria &…

## Timeline

- **2019-01-17 — Filing of Company…**: Company Petition bearing C.P. (IB) No. 838 / MB / 2019 filed by Suresh Gupta under…
- **2017-02-09 — Settlement Ag…**: Settlement Agreement executed between the parties where the CD undertook to pay the total…

## 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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