Pankaj Kalra Vs Greeka Greens Solution (India) Limited (NCLAT Delhi)
The National Company Law Appellate Tribunal (NCLAT), Delhi, has set aside the Corporate Insolvency Resolution Process (CIRP) initiated against Essar Oil & Gas Exploration & Production Limited. The appeal was filed by the Suspended Director of the corporate debtor, challenging the NCLT Ahmedabad’s order dated September 6, 2024, which admitted a Section 9 application filed by Greeka Greens Solution (India) Limited. The NCLAT had already suspended the impugned order through an interim order on September 10, 2024, and later, upon hearing the case, found that the insolvency proceedings were unwarranted.
The dispute originated from a contract for drilling rig services, under which Essar Oil & Gas owed payments to Greeka Greens Solution. After receiving a demand notice in 2018, both parties entered into a settlement agreement, revising the total due amount to ₹8.30 crore ($1.11 million), payable in 21 installments. The company paid 20 installments but failed to pay the final installment due to a calculation dispute. Despite this, the operational creditor filed a fresh demand notice in 2022, followed by a Section 9 application for insolvency. During the proceedings, the final payment of USD 125,833 was made on June 26, 2024, discharging the entire debt. The NCLAT ruled that insolvency proceedings were inappropriate in this case and dismissed the Section 9 application, setting aside the NCLT Ahmedabad order.
