# In the matter of Gammon India Limited

> NCLT judgment dated 2023-11-09. Citation: TCN-2023-NCLT-00799. The case involves an application filed by Mr. Jayakrushna Parida, an Operational Creditor,…

- **Court:** NCLT
- **Order date:** 9 Nov 2023
- **Citation:** TCN-2023-NCLT-00799
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/gammon-india-limited-9776bfde

## Summary

### Background

The case involves an application filed by Mr. Jayakrushna Parida, an Operational Creditor, against Gammon India Limited, the Corporate Debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP). The Operational Creditor claimed a default of INR 50,52,228/- which includes the principal amount of Rs.39,31,695/- and an interest of INR 11,20,533/-. The Corporate Debtor was awarded contractual work by Chennai Metro Rail Limited. The Operational Creditor supplied labour/work force to the Corporate Debtor from Orissa for the Chennai Metro Rail Project. The Corporate Debtor retained 5% amount towards retention money. The Operational Creditor claims that the Corporate Debtor issued a confirmation

…

## Facts

Mr. Jayakrushna Parida, an individual civil contractor and labour supplier (Operational Creditor), filed a petition against Gammon India Limited (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate CIRP. The Operational Creditor claimed a default of INR 50,52,228/-, comprising a principal amount of Rs.39,31,695/- due as of 08/11/2015 and interest of INR 11,20,533/- calculated at 18% p.a. from 08/11/2015 to 07/06/2017. The Operational Creditor supplied labour/work force to the Corporate Debtor from Orissa for the Chennai Metro Rail Project. The Corporate Debtor retained 5% amount towards retention money. The Operational Creditor alleged that the Corporate Debtor issued a confirmation letter on 29th September, 2015,

…

## Issues and analysis

### Issue 1: Whether the Operational Creditor has established the existence of an operational debt and its …

**Ratio:** The existence of an operational debt must be established through proper documentation,

…

**Reasoning:** The NCLT found that the Operational Creditor failed to provide necessary invoices, work

…

**Interpretation:** The interpretation of the Insolvency and Bankruptcy Code, 2016, requires the

…

**Application:** In this case, the Operational Creditor's failure to provide invoices, work

…

## Parties

- **Judges:** ANIL RAJ C…; Kuldip Kumar…
- **Appellants:** Jayakrushna…
- **Respondents:** Gammon India…
- **Advocates:** Reshant…; P.G. Sa…; +1 more

## Timeline

- **2015-07-13 — Termination of…**: The contract between the Corporate Debtor and…
- **2015-09-29 — Balance Confirmation…**: Alleged date of the balance confirmation…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/gammon-india-limited-9776bfde