# In the matter of Vensar Construction Company Limited CP (IB) No. 105-9-9HDB-2020

> NCLT judgment dated 2022-02-07. Citation: TCN-2022-NCLT-04231. The case involves an application filed by Trutech Constructions Pvt Ltd (Operational Creditor)…

- **Court:** NCLT
- **Order date:** 7 Feb 2022
- **Citation:** TCN-2022-NCLT-04231
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/vensar-construction-company-limited-cp-ib-no-105-9-9hdb-2020-23793835

## Summary

### Background

The case involves an application filed by Trutech Constructions Pvt Ltd (Operational Creditor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Vensar Constructions Company (Corporate Debtor) for failing to discharge a debt of Rs. 81,88,914. The debt includes a principal amount of Rs. 57,58,175 and interest of Rs. 24,30,739. The Operational Creditor was engaged by the Corporate Debtor for reconstruction of Dam Intakes and Allied structures for a total contract value of Rs. 18,92,34,446. The Corporate Debtor communicated to the Operational Creditor that Lanco Infratech Limited had informed to stop all the construction activities on the project site with immediate effect and instructed the same to the Operational Creditor and instructed to measure all

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## Facts

Trutech Constructions Pvt Ltd (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Vensar Constructions Company (Corporate Debtor) for failing to pay a debt of Rs. 81,88,914, which includes a principal of Rs. 57,58,175 and interest of Rs. 24,30,739. The debt arose from a contract where the Operational Creditor was engaged to reconstruct Dam Intakes and Allied structures for the Corporate Debtor's Hydro Electric Project at Uttarakhand for a total contract value of Rs. 18,92,34,446. The project was to be completed by 30.06.2018. The Operational Creditor commenced work, and Measurement Books were maintained and signed by both parties. The Corporate Debtor, via a letter dated 01.08.2017, informed the Operational

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## Issues and analysis

### Issue 1: Whether there is an …

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

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**Reasoning:** The NCLT found that the Corporate Debtor was liable to pay the amount claimed by the

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**Interpretation:** An 'Operational Debt' is a claim in respect of the provision of goods or

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**Application:** The NCLT determined that the debt arising from the construction contract

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## Parties

- **Judges:** Venkata Ramakrishn…; SH. VEERA BRAHMA…
- **Appellants:** Trutech Constructi…
- **Respondents:** Vensar Constructio…

## Timeline

- **2017-04-01 — Letter of…**: Corporate Debtor granted the Contract to the Operational Creditor for 2x38 MW Phata Byung…
- **2017-06-30 — Project Comple…**: Entire scope of work has to be…

## 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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