# In the matter of Neccon Power & Infra Limited

> NCLT judgment dated 2025-06-13. Citation: TCN-2025-NCLT-00710. The case involves an application filed by Paramount Communications Limited, the Operational…

- **Court:** NCLT
- **Order date:** 13 Jun 2025
- **Citation:** TCN-2025-NCLT-00710
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/neccon-power-infra-limited-3d2771e5

## Summary

### Background

The case involves an application filed by Paramount Communications Limited, the Operational Creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Neccon Power & Infra Limited, the Corporate Debtor. The Petitioner claims that the Respondent defaulted on payments for subcontracted work related to underground cable laying. The Petitioner executed part of the subcontracted work awarded to the Respondent by Power Grid Corporation of India Limited (PGCIL) and raised several invoices between February 2022 and August 2023. The Respondent allegedly admitted to the debt on multiple occasions but failed to make full payment.

## Facts

Paramount Communications Limited (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Neccon Power & Infra Limited (Corporate Debtor). The Operational Creditor and Corporate Debtor entered into an agreement on 03.07.2021, where the Corporate Debtor subcontracted part of the underground cable laying work awarded to them by Power Grid Corporation of India Limited (PGCIL). The Operational Creditor executed part of the subcontracted work and raised several invoices between February 2022 and August 2023. The principal sum of Rs. 1,84,00,853/- remains unpaid. The Corporate Debtor allegedly admitted these dues on multiple occasions, including in Minutes

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## Issues and analysis

### Issue 1: Whether the Petitioner, Paramount Communications Limited, has established the existence of an …

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

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**Reasoning:** The Tribunal found that the Petitioner presented sufficient evidence, including invoices

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**Interpretation:** The legal principle is that if an operational creditor can demonstrate the

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**Application:** In this case, the Petitioner provided invoices and minutes of meetings where

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## Parties

- **Judges:** Rammurti Ku…; Yogendra Kumar…
- **Appellants:** Paramount…
- **Respondents:** Neccon Power &…

## Timeline

- **2021-07-03 — Agreement between…**: The Respondent entered into an Agreement and issued a Work Order to the Petitioner,…
- **2022-02-01 — Invoices…**: The Petitioner executed part of the subcontracted work and raised several invoices upon…

## 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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