NCLT New Delhi Admits ‘Brij Gopal Construction Co.’ Into Insolvency

The National Company Law Tribunal (“NCLT”), New Delhi Bench, comprising of Shri Bachu Venkat Balaram Das (Judicial Member) and Shri Atul Chaturvedi (Technical Member), while adjudicating a petition filed in M/s Geocon Infra Pvt. Ltd. v M/S. Brij Gopal Construction Company Pvt. Ltd., has initiated Corporate Insolvency Resolution Process (CIRP) against Brij Gopal Construction Company Pvt. Ltd. Mr. Mukesh Kumar Jain has been appointed as the Interim Resolution Professional (IRP). Background Facts Brij Gopal Construction Company Pvt. Ltd. (“Corporate Debtor”) is a company engaged in the business of infrastructure development works, such as Roads & Highways, Sewerage, Storm Water, Drain Water Supply, Works Management and Housing Projects. The Corporate Debtor is one of the top Contracting Companies in the State of Haryana. M/s Geocon Infra Pvt. Ltd. (“Operational Creditor”) is engaged in the infrastructure business. On 18.04.2018, the Corporate Debtor issued a work order to the Operational Creditor for construction work related to ‘Four Laning of Bineka to Goharganj of Bhopal - Jabalpur (NH-12) Highway Project in Madhya Pradesh’. The Corporate Debtor did not make payment towards certain invoices raised by the Operational Creditor. Therefore, the Operational Creditor filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 (“IBC”), seeking initiation of Corporate Insolvency Resolution Process (“CIRP”) against the Corporate Debtor, over a default of Rs. 1.5 Crores. The Corporate Debtor disputed the amount payable, since the final bill amount can only be arrived at after reconciliation of accounts, which has not been done. Further, the Corporate Debtor is a solvent company having a net worth of Rs.1002 Crores as on 31.03.2022, as per the provisional balance sheet for the F.Y. 2021-22 and cannot be sent into insolvency. The NCLT noted that the scope of IBC is limited to existence of debt and default in its payment. “Having regard to the facts of the case, we are of the considered view that the debt arises out of the work order dated 18.04.2018, the said amount is a debt disbursed against the consideration owned by the Operational Creditor, hence it is covered under the definition of "Operational Debt” as defined under Section 5(21) of the Code and the Applicant will be treated as "Operational Creditor" as defined under Section 5(20) of the Code.” Accordingly, the NCLT admitted the Corporate Debtor into CIRP and appointed Mr. Mukesh Kumar Jain as the Interim Resolution Professional (IRP). Case Title: M/s Geocon Infra Pvt. Ltd. v M/S. Brij Gopal Construction Company Pvt. Ltd. Case No.: IB – 514(ND)/2022 Counsel for Petitioner: Mr. Gaurav Verma, Adv. Counsel For the Respondent: Dr. Anurag Kr. Agarwal, Mr. Prateek Agarwal, Ms. Suhani Yadav, Advocates. Click Here To Read/ Download Order

NCLT New Delhi Admits ‘Brij Gopal Construction Co.’ Into Insolvency

Pallavi Mishra

Tags