# In the matter of Valecha Kachchh Toll Roads Limited

> NCLT judgment dated 2024-10-09. Citation: TCN-2024-NCLT-00457. Gujarat State Road Development Corporation filed an application under Section 60(5)(c) of the…

- **Court:** NCLT
- **Order date:** 9 Oct 2024
- **Citation:** TCN-2024-NCLT-00457
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/valecha-kachchh-toll-roads-limited-15a39a9a

## Summary

### Background

Gujarat State Road Development Corporation filed an application under Section 60(5)(c) of the Insolvency and Bankruptcy Code, 2016, against the decision of the Resolution Professional of Valechchha Toll Roads Limited (Corporate Debtor) regarding the rejection of the applicant's claim as an operational creditor. The applicant sought a declaration as a creditor and direction to admit the claim, amend the Information Memorandum, and ensure resolution applicants modify their plans accordingly. The applicant was authorized by the Government of Gujarat to augment the existing road on the Bhuj Bhachau section of the State Highway No.42 by constructing it on a build, operate, and transfer basis. A Concession Agreement was executed on 12.07.2011. Due to delays, a Supplementary

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## Facts

The Gujarat State Road Development Corporation (Applicant) was authorized by the Government of Gujarat to augment the existing road on the Bhuj Bhachau section of State Highway No. 42 on a build, operate, and transfer (BOT) basis. In 2009, a consortium was selected for the work, and the Corporate Debtor, Valechchha Toll Roads Limited, was incorporated as a limited liability company to undertake the project. A Concession Agreement was executed on 12.07.2011. Due to delays, a Supplementary Agreement was executed on 12.05.2015. The Applicant provided a one-time infusion of funds of Rs. 74 crore on 24.10.2017, but the Corporate Debtor still failed to complete the work. Notices were issued on 14.11.2019 and 31.03.2021. The Applicant demanded payment towards the premium as

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## Issues and analysis

### Issue 1: Whether the Resolution Professional (RP) was justified in rejecting the Applicant's claim as an …

**Ratio:** The definition of 'claim' under Section 3(6) of the IBC includes a right to payment,

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**Reasoning:** The NCLT reasoned that the RP erred in dismissing the entire claim on the ground that the

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**Interpretation:** The term 'claim' under the IBC is interpreted broadly to include disputed

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**Application:** The NCLT directed the RP to consider the part of the claim submitted by the

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## Parties

- **Judges:** ANIL RAJ C…; Kuldip Kumar…
- **Appellants:** Gujarat State…
- **Respondents:** Valechha Kachchh…; Avil Me…
- **Advocates:** Vikram Na…; Rishabh J…; +8 more

## Timeline

- **2011-07-12 — Concession Ag…**: Concession Agreement executed between Gujarat State Road Development Corporation and…
- **2015-05-12 — Supplementary…**: Supplementary Agreement executed between Gujarat State Road Development Corporation and…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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