# In the matter of Madhucon Projects Ltd. Company Petition IB/103-2021

> NCLT judgment dated 2022-05-30. Citation: TCN-2022-NCLT-02554. Thermo Systems Pvt Ltd, the Operational Creditor, filed an application under Section 9 of the…

- **Court:** NCLT
- **Order date:** 30 May 2022
- **Citation:** TCN-2022-NCLT-02554
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/madhucon-projects-ltd-company-petition-ib103-2021-e0817e22

## Summary

### Background

Thermo Systems Pvt Ltd, the Operational Creditor, filed an application under Section 9 of the Insolvency & Bankruptcy Code, 2016, against Madhucon Projects Limited, the Corporate Debtor, for initiation of Corporate Insolvency Resolution Process (CIRP). The Operational Creditor claimed that the Corporate Debtor owed them Rs. 5,92,65,932/- based on a decree of the Civil Court dated 22.12.2020. The Corporate Debtor disputed the claims, citing delays in filing counter-affidavits and the pendency of an appeal against the civil court decree. The Corporate Debtor also argued that the claim was time-barred and that original invoices were not produced.

## Facts

Thermo Systems Pvt Ltd (Operational Creditor) filed an application against Madhucon Projects Limited (Corporate Debtor) under Section 9 of the Insolvency & Bankruptcy Code, 2016, seeking initiation of CIRP. The claim was based on a Civil Court decree dated 22.12.2020 for Rs. 5,92,65,932/-. The Operational Creditor is in the business of engineering, procurement, construction, and commissioning of projects. The Corporate Debtor had placed orders/contracts dated 27.11.2009 and 25.06.2010 for supplies and services, which the Operational Creditor completed as per Work Completion Certificates dated 22.04.2012 and 07.09.2013. A sum of Rs.327.59 lacs was recorded as outstanding in Minutes of Meeting dated 23.12.2014. After disagreements, a Memorandum of Understanding dated

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## Issues and analysis

### Issue 1: Whether documentary evidence furnished by the applicant shows that an operational debt as claimed …

**Ratio:** When a competent civil court has passed a decree in favor of the applicant against the

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**Reasoning:** The Tribunal reasoned that the Corporate Debtor had admitted to the execution of work

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**Interpretation:** The legal issue revolves around whether a civil court decree can form the basis

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**Application:** The ratio and reasoning were applied to the specific facts of the case, where

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## Parties

- **Judges:** Venkata Ramakrishn…; SH. VEERA BRAHMA…
- **Appellants:** Thermo Systems…
- **Respondents:** Madhucon Projects…

## Timeline

- **2009-11-27 — Contract…**: Corporate Debtor placed…
- **2010-06-25 — Contract…**: Corporate Debtor placed…

## 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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