# In the matter of BKB Transport Pvt. Ltd Vs. NTPC Ltd. Company Appeal (AT) (Ins) No. 122 of 2021

> NCLAT judgment dated 2021-09-08. Citation: TCN-2021-NCLAT-00103. BKB Transport Pvt. Ltd. filed an appeal against the order dated 04.01.2021 passed by the…

- **Court:** NCLAT
- **Order date:** 8 Sept 2021
- **Citation:** TCN-2021-NCLAT-00103
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/bkb-transport-pvt-ltd-vs-ntpc-ltd-company-appeal-e75c7458

## Summary

### Background

BKB Transport Pvt. Ltd. filed an appeal against the order dated 04.01.2021 passed by the National Company Law Tribunal (NCLT), Principal Bench, Delhi, in Company Petition (IB) No. - 180(PB)/2020. The NCLT had dismissed the application filed under Section 9 of the Insolvency and Bankruptcy Code (IBC). The 'Corporate Debtor', NTPC Ltd., sought to set up a Super Thermal Power Project at Barh and invited bids for transportation of Coal. BKB Transport Pvt. Ltd. participated in the bid, and a contract agreement was entered into on 30.06.2016. BKB Transport Pvt. Ltd. claimed that an amount of Rs. 11,21,44,047.40/- was due and payable as on 29.02.2019, but NTPC Ltd. alleged a shortage of supply of Coal and did not pay the amounts. NTPC Ltd. also stated that the final bill was

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## Facts

NTPC Ltd. sought to set up a Super Thermal Power Project at Barh and invited bids for transportation of Coal. BKB Transport Pvt. Ltd. participated in the bid, and a contract agreement was entered into on 30.06.2016 for the period 19.03.2016 to 18.03.2017 for a bid amount of Rs. 2,11,95,00,000/-. BKB Transport Pvt. Ltd. claimed that an amount of Rs. 11,21,44,047.40/- was due and payable as on 29.02.2019. NTPC Ltd. alleged a shortage of supply of Coal and did not pay the amounts. On 16.04.2019, NTPC Ltd. addressed a letter to BKB Transport Pvt. Ltd. to depute a representative for final payment, but no amount was paid. The allegations of short supply were denied by BKB Transport Pvt. Ltd. In an email dated 24.01.2020, NTPC Ltd. admitted that an amount of Rs.

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## Issues and analysis

### Issue 1: Whether any debt is in …

**Ratio:** The existence of debt is a prerequisite for initiating the Corporate Insolvency

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**Reasoning:** The Adjudicating Authority considered whether any debt was in existence at the time of

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**Interpretation:** The court interpreted that the debt's existence is contingent upon the

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**Application:** In this case, because the final bill was not prepared and penalties were not

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## Parties

- **Judges:** Anant Bijay…; Shreesha…
- **Appellants:** BKB Transport…
- **Respondents:** NTPC…
- **Advocates:** Sumeet Go…; Kaushik P…; +6 more

## Timeline

- **2016-06-30 — Contract Ag…**: A contract agreement was entered into…
- **2019-02-29 — Amount Clai…**: BKB Transport Pvt. Ltd. claimed that an amount of Rs. 11,21,44,047.40/- was due and…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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