# In the matter of Madhucon Infra Limited CP (IB) No. 101-9-HDB-2019

> NCLT judgment dated 2022-04-11. Citation: TCN-2022-NCLT-03283. The case involves an application filed by M/s Equirus Capital Private Limited (Operational…

- **Court:** NCLT
- **Order date:** 11 Apr 2022
- **Citation:** TCN-2022-NCLT-03283
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/madhucon-infra-limited-cp-ib-no-101-9-hdb-2019-6fa2991d

## Summary

### Background

The case involves an application filed by M/s Equirus Capital Private Limited (Operational Creditor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against Madhucon Infra Limited (Corporate Debtor) for defaulting on an alleged debt of Rs. 3,16,84,006/-. The Operational Creditor acted as an advisor for the sale of equity stake in M/s Madhucon Agra Jaipur Expressway Ltd (MAJEL) to Madhucon Infra Limited. Madhucon Infra Limited agreed to pay 1.5% of equity value as fees to the Operational Creditor as per the Engagement Letter dated 24.09.2014, with the transaction closing with Cube Highways Infrastructure Pte Ltd, Singapore, for a value of Rs. 230 crores. The debt is claimed to be due

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## Facts

M/s Equirus Capital Private Limited (Operational Creditor) filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Madhucon Infra Limited (Corporate Debtor) for an alleged default in payment of Rs. 3,16,84,006/-. The Operational Creditor acted as an advisor for the sale of equity stake in M/s Madhucon Agra Jaipur Expressway Ltd (MAJEL) to Madhucon Infra Limited. The Corporate Debtor agreed to pay 1.5% of the equity value as fees, as per an Engagement Letter dated 24.09.2014. The transaction closed with Cube Highways Infrastructure Pte Ltd, Singapore, for Rs. 230 crores. The debt is claimed to be due from invoices dated 30.03.2016, 09.04.2016, and 11.04.2016. The Corporate Debtor approached the Operational Creditor for a one-time settlement

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## Issues and analysis

### Issue 1: Whether there is an operational debt in favor of the operational creditor payable by the Corporate …

**Ratio:** The existence of an operational debt and default in its payment are prerequisites for

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**Reasoning:** The Tribunal relied on the invoices dated 09.04.2016 and 11.04.2016, along with email

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**Interpretation:** The Tribunal interpreted the evidence to mean that the Corporate Debtor

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**Application:** The Tribunal applied the ratio to the facts by examining the invoices, email

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## Parties

- **Judges:** Venkata Ramakrishn…; Veera Brahma Rao…
- **Appellants:** M/s. Equiruscapita…
- **Respondents:** Madhucon Infra…

## Timeline

- **2014-09-24 — Engagement…**: Engagement Letter between Operational Creditor…
- **2016-03-30 — Invoice…**: One of the invoice dates for the debt…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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