# in the matter of Era Infra Engineering Ltd. Vs Prideco Commercial Projects Pvt. Ltd. CA (AT) No. 31-2017

> NCLAT judgment dated 2017-05-03. Citation: TCN-2017-NCLAT-00181. The Appellant/Corporate Debtor challenged the order(s) dated April 12, 2017, passed by the…

- **Court:** NCLAT
- **Order date:** 3 May 2017
- **Citation:** TCN-2017-NCLAT-00181
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/era-infra-engineering-ltd-vs-prideco-commercial-projects-pvt-ltd-ca-acbb55e5

## Summary

### Background

The Appellant/Corporate Debtor challenged the order(s) dated April 12, 2017, passed by the Adjudicating Authority, Principal Bench, New Delhi, in Insolvency Petition No. 26(ND) of 2017. The Adjudicating Authority held that the order was being passed within 14 days as per Section 9 of the Insolvency and Bankruptcy Code, 2016. The Adjudicating Authority initiated the Insolvency Resolution Process by admitting the application, appointing an interim resolution professional, ordering a moratorium, and issuing directions.

## Facts

Era Infra Engineering Ltd. (Appellant/Corporate Debtor) challenged an order dated April 12, 2017, passed by the Adjudicating Authority, Principal Bench, New Delhi, in Insolvency Petition No. 26(ND) of 2017. The Adjudicating Authority initiated an Insolvency Resolution Process against Era Infra Engineering Ltd. based on an application by Prideco Commercial Projects Pvt Ltd. (Respondent/Operational Creditor). The Appellant argued that they were not served a notice under Section 8 of the Insolvency and Bankruptcy Code (I&B Code), 2016, and that the application was incomplete. The Respondent contended that other formalities were completed and that a notice under Section 271 of the Companies Act, 2013, for winding up, had been issued, which should be considered

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in admitting the insolvency application under Section 9 of …

**Ratio:** The ratio is that strict compliance with the mandatory provisions of Section 8 of the

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**Reasoning:** The court reasoned that the Adjudicating Authority failed to recognize that the

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**Interpretation:** Section 8 of the I&B Code and Rule 5 of the I&B Rules are interpreted

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**Application:** In this case, the Operational Creditor (Prideco Commercial Projects Pvt Ltd.)

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## Parties

- **Judges:** S.J. Mukhop…; Balvinder…
- **Respondents:** Era Infra…; Prideco Commercial…

## Timeline

- **2017-04-12 — Order by Adjudicating…**: Adjudicating Authority passed an order initiating Insolvency Resolution Process against…
- **2017-05-03 — Appeal by Corporate…**: The Appellant/Corporate Debtor challenged the order dated April 12, 2017, passed by the…

## 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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