# In the matter of JMC Projects (India) Limited

> NCLT judgment dated 2023-11-07. Citation: TCN-2023-NCLT-00847. The case involves an application filed by Mahendra Kumar Verma (Operational Creditor) under…

- **Court:** NCLT
- **Order date:** 7 Nov 2023
- **Citation:** TCN-2023-NCLT-00847
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/jmc-projects-india-limited-3addc04b

## Summary

### Background

The case involves an application filed by Mahendra Kumar Verma (Operational Creditor) under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Kalpataru Projects International Ltd. The operational creditor claimed a default of Rs.3,61,58,020/- based on a work order for a project named "Lahchoora Water Supply Scheme". The corporate debtor disputed the claim, stating that there was a pre-existing dispute and that payments had been made for the work done. The corporate debtor also raised a preliminary objection under Section 10A of IBC, arguing that the application was barred because the default occurred during the period specified in that section.

## Facts

Mahendra Kumar Verma, the Operational Creditor, filed an application under Section 9 of the IBC to initiate CIRP against Kalpataru Projects International Ltd for a default of Rs.3,61,58,020/-. The claim arose from a work order issued on 25.05.2021 for the "Lahchoora Water Supply Scheme". The Operational Creditor issued a bill/tax invoice for Rs.1,98,75,321/- on 30.07.2021. The Corporate Debtor contended that there was a discussion on 16.04.2021 to finalize the work order and that a confirmation was issued on 25.05.2021. They also stated that they had paid Rs.1,35,49,084 towards the work executed until September 2021. The Corporate Debtor also claimed that the Operational Creditor raised a claim for extra expenditure during the rainy season. A revised work

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## Issues and analysis

### Issue 1: Whether the application under Section 9 of the …

**Ratio:** Section 10A of the IBC bars the filing of an application for CIRP for defaults arising on

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**Reasoning:** The court perused the provision of Section 10A of the Code and observed that the

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**Interpretation:** Section 10A provides a moratorium on the initiation of CIRP for defaults

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**Application:** The court found that the default in this case occurred after 24.03.2021, as

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## Parties

- **Judges:** Chitra Ha…; Velamur G Venkata…
- **Appellants:** Mahendra Kumar…
- **Respondents:** JMC Projects…; Kalpataru Power…

## Timeline

- **2021-04-16 — Discussion for…**: Discussion between parties for finalising…
- **2021-05-25 — Work Order…**: Work Order No.…

## 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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