Ksheeraabd Constructions Private Limited Vs Reliance Infrastructure Limited (NCLT Mumbai)
NCLT Mumbai held that the object of the Insolvency and Bankruptcy Code, 2016 [IBC] is not to admit a Corporate Debtor [CD] into Corporate Insolvency Resolution Process [CIRP] when there is pre-existing dispute between the parties. Thus, application for CIRP rejected.
Facts- The present Company Petition was filed on 14.01.2019 u/s. 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 (AA Rules) by Ksheeraabd Constructions Private Limited, the Operational Creditor (OC), through Mr. Kishan Kanuganti, Managing Director of the OC, authorised vide Board Resolution dated 29.10.2018, for initiating Corporate Insolvency Resolution Process (CIRP) in respect of Reliance Infrastructure Limited, the Corporate Debtor (CD).
The total amount of default alleged is Rs.35,80,00,000/- comprising of retention amount of Rs. 1.21 Crore, royalty dues of Rs. 8.86 Crore, Rs. 3.50 Crore against invoices during August and September 2018, as well as Rs. 22.23 Crore as outstanding amount due over other items including benefit sharing. The OC’s alleged outstanding claims are based on services provided to the CD as contractor in the construction of Pune-Satara Section of the National Highway (NH)-4 in the State of Maharashtra.
