# Avil Menezes Liquidator of Sunil Hitech and Engineers Limited vs Abdul Qudduskhan & Anr.

> NCLAT judgment dated 2024-05-14. Citation: TCN-2024-NCLAT-00439. The appeal is filed by the Liquidator of Sunil Hitech Engineering Ltd. (SHEL) against the…

- **Court:** NCLAT
- **Order date:** 14 May 2024
- **Citation:** TCN-2024-NCLAT-00439
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/avil-menezes-liquidator-of-sunil-hitech-and-engineers-limited-vs-abdul-qudduskha-08721ae0

## Summary

### Background

The appeal is filed by the Liquidator of Sunil Hitech Engineering Ltd. (SHEL) against the Impugned Order dated November 21, 2023, passed by the Adjudicating Authority (National Company Law Tribunal, Mumbai Bench) in IA/535/2022 in C.P. (IB) No.2295/NCLT/MB/2018. The Adjudicating Authority allowed the claims during the CIRP to be treated as CIRP costs. The corporate debtor, SHEL, was awarded a contract by NTPC to construct CW Systems and MUW Systems Civil Works. SHEL entered into a sub-contract with RBM Enterprises. CIRP was initiated against SHEL in September 2018, and Mr. Harshad Deshpande was appointed as the Interim Resolution Professional (IRP), followed by Mr. Ashish Rathi as the Resolution Professional (RP). Later, an application for liquidation was filed and

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## Facts

National Thermal Power Corporation Limited (NTPC) awarded Sunil Hitech Engineering Ltd. (SHEL) a contract to construct CW Systems and MUW Systems Civil Works for the Darlipali Super Thermal Power Project, Odisha on November 18, 2014. On February 27, 2018, SHEL entered into a sub-contract with RBM Enterprises to fabricate and erect CW ducts at the NTPC project site. In September 2018, CIRP was initiated against SHEL, and Mr. Harshad Deshpande was appointed as the Interim Resolution Professional (IRP). Subsequently, Mr. Ashish Rathi was appointed as the Resolution Professional (RP). An Interlocutory Application for liquidation of SHEL was filed and admitted in June 2019, and Mr. Avil Menezes was appointed as the liquidator. RBM Enterprises submitted a claim for INR

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## Issues and analysis

### Issue 1: Whether the costs incurred for the work done during the CIRP by Respondent No. 1/subcontractor can …

**Ratio:** CIRP costs are defined under Section 5(13) of the Insolvency and Bankruptcy Code, 2016,

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**Reasoning:** The NCLAT reasoned that the Adjudicating Authority erred in treating the Respondent's

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**Interpretation:** The interpretation of CIRP cost requires that the expenses must be directly

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**Application:** In this case, the NCLAT found that the Respondent's claim did not meet the CIRP

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## Parties

- **Judges:** Ashok Bh…; Arun Ba…
- **Appellants:** Avil Me…
- **Respondents:** Sunil Hitech and…; Abdul Qudd…
- **Advocates:** Dhrupad V…; J. Ra…; +10 more

## Timeline

- **2014-11-18 — Letter of…**: National Thermal Power Corporation Limited (NTPC) issued a Letter of Award to Sunil…
- **2018-02-27 — Sub-Contract A…**: SHEL entered into a sub-contract with RBM Enterprises to fabricate and erect CW ducts at…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61 — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

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