# In the matter of Gayatri Projects Limited

> NCLT judgment dated 2025-02-10. Citation: TCN-2025-NCLT-00510. The case involves two Interlocutory Applications (I.A. No. 2295 of 2024 and I.A. No. 2388 of…

- **Court:** NCLT
- **Order date:** 10 Feb 2025
- **Citation:** TCN-2025-NCLT-00510
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/gayatri-projects-limited-54c21f4d

## Summary

### Background

The case involves two Interlocutory Applications (I.A. No. 2295 of 2024 and I.A. No. 2388 of 2024) filed under Section 60(5) of the Insolvency and Bankruptcy Code, 2016 (IBC) by the Resolution Professional (RP) of Gayatri Projects Limited (Corporate Debtor/CD). The applications are interlinked and connected, addressing issues related to tax demands raised against a Joint Venture (JV) in which the CD is a participant. The RP seeks reliefs including declaring certain orders and recovery proceedings as illegal due to violations of the IBC and setting aside an order rejecting the appeal preferred by the Corporate Debtor.

## Facts

Gayatri Projects Limited (Corporate Debtor) was admitted into Corporate Insolvency Resolution Process (CIRP) on 2022-11-15. The Resolution Professional (RP) was appointed on the same date. The Corporate Debtor (CD), along with RNS Infrastructure Limited (RNS) and Sadguru Infratech Private Limited (SIPL), entered into a Joint Venture Agreement dated 2016-11-29 under the name of Gayatri RNS SIPL JV. The CD was designated as the lead partner, with a 70% share of work, while RNS had 25% and SIPL had 5%. The Karnataka Neeravari Nigam Ltd. issued a tender on 2016-10-18 for a project involving survey, investigation, design, supply, installation, testing, and commissioning of a lift irrigation system. The JV emerged as the successful bidder and entered into an agreement with

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## Issues and analysis

### Issue 1: Whether the tax demand raised against the Joint Venture (JV) can be enforced during the Corporate …

**Ratio:** The moratorium under Section 14 of the IBC prevents any legal proceedings against the

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**Reasoning:** The court reasoned that if the income from the JV is found to be that of the CD, the

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**Interpretation:** The interpretation of Section 14 of the IBC is that it imposes a moratorium on

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**Application:** The court applied the ratio to the specific facts of the case, noting that the

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## Parties

- **Judges:** Rajeev Bh…; Sanjay…
- **Appellants:** Sai Ramesh…
- **Respondents:** Gayatri Projects…; Assistant…

## Timeline

- **2016-10-18 — Tender I…**: Karnataka Neeravari Nigam Ltd. issued a tender for a project involving survey,…
- **2016-11-29 — Joint Venture…**: Gayatri Projects Limited (CD), RNS Infrastructure Limited (RNS), and Sadguru Infratech…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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