# In the matter of Gammon India Limited

> NCLT judgment dated 2023-12-07. Citation: TCN-2023-NCLT-00373. Laxmidhar Mohanty, an operational creditor, filed a petition under Section 9 of the Insolvency…

- **Court:** NCLT
- **Order date:** 7 Dec 2023
- **Citation:** TCN-2023-NCLT-00373
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/gammon-india-limited-9da03c80

## Summary

### Background

Laxmidhar Mohanty, an operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Gammon India Limited, the corporate debtor, for an unresolved operational debt of Rs. 3,86,32,286 as of 31.08.2019. The operational creditor claimed that the corporate debtor had defaulted on payments for work orders issued for projects in Odisha. The corporate debtor denied the contentions and argued that the petition was barred by limitation.

## Facts

Laxmidhar Mohanty, an operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Gammon India Limited, a corporate debtor, for an operational debt of Rs. 3,86,32,286 as of 31.08.2019. The debt arose from work orders issued by the corporate debtor for projects in Odisha. The operational creditor claimed that invoices were raised, but the corporate debtor defaulted on payments. The corporate debtor acknowledged the dues but defaulted on payments. A demand notice was issued on 31.08.2019, received by the corporate debtor on 03.09.2019, but no payment or reply was made. The corporate debtor denied the contentions, stating the petition was time-barred. The operational

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## Issues and analysis

### Issue 1: Whether the petition filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 is barred by …

**Ratio:** A petition under Section 9 of the IBC must be filed within the period of limitation as

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**Reasoning:** The court reasoned that the operational creditor failed to provide invoices or other

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**Interpretation:** The interpretation of the law of limitation requires that a petition must be

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**Application:** In this case, the court found that the operational creditor did not provide

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## Parties

- **Judges:** ANIL RAJ C…; Kuldip Kumar…
- **Appellants:** Laxmidhar M…
- **Respondents:** Gammon India…

## Timeline

- **2019-08-31 — Operationa…**: Operational debt of Rs.…
- **2019-08-31 — Demand Notice…**: Operational Creditor issued demand notice under Form-3 of the Insolvency and Bankruptcy…

## 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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