# In the matter of Ramky Infrastructure Limited

> NCLT judgment dated 2025-02-25. Citation: TCN-2025-NCLT-00436. The case involves an application filed by M/s. R.K. Lala, an operational creditor (OC), under…

- **Court:** NCLT
- **Order date:** 25 Feb 2025
- **Citation:** TCN-2025-NCLT-00436
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ramky-infrastructure-limited-af5b840b

## Summary

### Background

The case involves an application filed by M/s. R.K. Lala, an operational creditor (OC), under Section 9 of the Insolvency and Bankruptcy Code (IBC) to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s. Ramky Infrastructure Limited, the corporate debtor (CD). The OC claimed an operational debt of Rs. 1,71,51,528/- which allegedly fell due on 31.08.2020. The CD secured a contract in 2010 for the construction of a Medical College in Raigarh and subcontracted the electrical work to the OC in 2012. As per the agreement, the OC was required to provide a bank guarantee, but instead, a 5% deduction was made from the running and final bills. The CD was to repay 50% of the deducted amount two years after completion and the remaining 50% three years after

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## Facts

In 2010, Ramky Infrastructure Limited (Corporate Debtor/CD) secured a contract for constructing a Medical College in Raigarh, Chhattisgarh. On 21.03.2012, the CD subcontracted the electrical work to R.K. Lala (Operational Creditor/OC). The OC was to provide a bank guarantee of 5% of the gross bill, but instead, consented to a 5% deduction from running and final bills. The CD was to repay 50% of the deducted amount two years after work completion and the remaining 50% three years after. The work was completed on 31.08.2017. The OC claims Rs. 1,71,51,528/- was due on 31.08.2020. The OC sent emails on 20.02.2020 and 01.10.2021 requesting release of Rs. 1,01,51,528/-. Following the CD's default, the OC issued a demand notice on 21.04.2022, which the CD received on

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## Issues and analysis

### Issue 1: Whether the OC could prove …

**Ratio:** The existence of a due debt is a prerequisite for initiating CIRP under Section 9 of the

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**Reasoning:** The NCLT found discrepancies in the claimed amount, the absence of an explicit agreement

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**Interpretation:** The interpretation of 'due debt' requires clear and unambiguous evidence of the

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**Application:** In this case, the NCLT found that the OC failed to provide a clear explanation

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## Parties

- **Judges:** Rajeev Bh…; Sanjay…
- **Appellants:** R.K.…
- **Respondents:** Ramky Infrastructu…

## Timeline

- **2010-01-01 — Contract S…**: Ramky Infrastructure Limited secured a contract for the construction of a Medical College…
- **2012-03-21 — Subcontract A…**: Ramky Infrastructure Limited…

## 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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