# In the matter of Lakshmi Transcon Private Limited CP (IB) No. 189-9-HDB-2021

> NCLT judgment dated 2022-03-08. Citation: TCN-2022-NCLT-03844. The case involves a petition filed by Arvensis Energy Private Limited (Operational Creditor)…

- **Court:** NCLT
- **Order date:** 8 Mar 2022
- **Citation:** TCN-2022-NCLT-03844
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/lakshmi-transcon-private-limited-cp-ib-no-189-9-hdb-2021-05dbea08

## Summary

### Background

The case involves a petition filed by Arvensis Energy Private Limited (Operational Creditor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Lakshmi Transcon Private Limited (Corporate Debtor) for defaulting on a payment of Rs. 1,80,61,387. The Operational Creditor is an MSME engaged in planning, design, and execution of transmission and telecom projects, while the Corporate Debtor is involved in the construction and execution of transmission lines and substation projects. The dispute arose from a Joint Venture Agreement between the parties related to a project awarded by APTRANSCO. The Operational Creditor claimed that the Corporate Debtor failed to make payments as per the agreement, despite receiving funds from APTRANSCO.

## Facts

Arvensis Energy Private Limited (Operational Creditor) filed a petition against Lakshmi Transcon Private Limited (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016. The Operational Creditor claimed that the Corporate Debtor defaulted on a payment of Rs. 1,80,61,387. The Operational Creditor and Corporate Debtor entered into a Joint Venture Agreement dated 24.11.2016 for a project awarded by the Transmission Corporation of Andhra Pradesh Limited (APTRANSCO). The Corporate Debtor was to act as the Lead Partner, and the Operational Creditor was to act as a member. The Operational Creditor raised invoices amounting to Rs. 10,23,14,389 after the commencement of the project. The Corporate Debtor requested the Operational Creditor to make payments

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted in making payment of the outstanding amount of Rs. …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016, allows an operational creditor to

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**Reasoning:** The Corporate Debtor failed to make the payment of Rs. 1,80,61,387 to the Operational

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**Interpretation:** The default is interpreted as a failure to pay a debt when it has become due

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**Application:** The Corporate Debtor's failure to pay the outstanding amount, raise a dispute,

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## Parties

- **Judges:** Venkata Ramakrishn…; SH. VEERA BRAHMA…
- **Appellants:** Arvensis Energy…
- **Respondents:** Lakshmi Transcon…
- **Advocates:** Hams…

## Timeline

- **2016-11-24 — Joint Venture…**: Corporate Debtor and Operational Creditor…
- **2017-03-21 — Letter of…**: Bid submitted by the Corporate Debtor was accepted by the Chief Engineer Construction,…

## 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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