Elecon Engineering Company Limited filed a suit against Energo Engineering Projects Limited & Ors seeking a permanent injunction restraining the defendant company from encashing bank guarantees and for recovery of Rs. 10,69,77,650/-. The defendant no.1 company faced insolvency proceedings before the NCLT, leading to the appointment of a Liquidator. An ad interim injunction against payments under the bank guarantees was granted initially. Insolvency proceedings were initiated against the defendant no.1, and the suit was stayed. Subsequently, liquidation proceedings commenced. The plaintiff argued that the suit should continue despite the liquidation proceedings, while the defendant, represented by the Liquidator, contended that the NCLT has exclusive jurisdiction.

Elecon Engineering Company Limited filed a suit against Energo Engineering Projects Limited & Ors seeking a permanent injunction restraining the defendant company from encashing bank guarantees and for recovery of Rs. 10,69,77,650/-. The defendant no.1 company faced insolvency proceedings before the NCLT, leading to the appointment of a Liquidator. An ad interim injunction against payments under the bank guarantees was granted initially. Insolvency proceedings were initiated against the defendant no.1, and the suit was stayed. Subsequently, liquidation proceedings commenced. The plaintiff argued that the suit should continue despite the liquidation proceedings, while the defendant, represented by the Liquidator, contended that the NCLT has exclusive jurisdiction.