# In the matter of Karpara Project Engineering Pvt. Ltd. Vs. BGR Energy Systems Ltd. CA(AT)(Insolvency) No.622-2018

> NCLAT judgment dated 2019-05-14. Citation: TCN-2019-NCLAT-00550. Karpara Project Engineering Private Limited, the Operational Creditor, filed an application…

- **Court:** NCLAT
- **Order date:** 14 May 2019
- **Citation:** TCN-2019-NCLAT-00550
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/karpara-project-engineering-pvt-ltd-vs-bgr-energy-systems-ltd-ca-1090ebba

## Summary

### Background

Karpara Project Engineering Private Limited, the Operational Creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process against BGR Energy Systems Ltd., the Corporate Debtor. The Adjudicating Authority (National Company Law Tribunal), Hyderabad Bench, rejected the application, citing the existence of a pre-existing dispute before the issuance of the demand notice. The Appellant, Karpara Project Engineering Private Limited, then filed an appeal against the order dated 13th August, 2018, arguing that the Adjudicating Authority ignored the fact that the Corporate Debtor never raised the issue of delay and liquidated damages during fifteen revisions of the work orders.

## Facts

Karpara Project Engineering Private Limited (Operational Creditor) was awarded a contract by BGR Energy Systems Ltd. (Corporate Debtor) for the collection of material, loading, transportation, erection, testing, and commissioning of a steam generator. The initial work order was dated 19th August, 2009, with a delivery date of 31st October, 2009. Subsequent work orders and revisions extended the completion time to 31st May, 2015. The Operational Creditor claims to have completed the work on 28th March, 2015, and received a completion certificate. The Operational Creditor raised retention and final bills. The Corporate Debtor sought extensions of bank guarantees provided by the Operational Creditor. The Corporate Debtor sent an email dated 17th July, 2017, admitting dues

…

## Issues and analysis

### Issue 1: Whether a pre-existing dispute existed between the Operational Creditor and the Corporate Debtor …

**Ratio:** The existence of a pre-existing dispute is a bar to the initiation of Corporate

…

**Reasoning:** The court reasoned that the Corporate Debtor had raised the issue of liquidated damages

…

**Interpretation:** The interpretation of 'pre-existing dispute' under Section 8(1) of the I&B

…

**Application:** In this case, the court found that the Corporate Debtor had raised the issue of

…

## Parties

- **Judges:** Bansi Lal…; A.I.S. C…
- **Appellants:** Karpara Project…
- **Respondents:** BGR Energy…

## Timeline

- **2009-08-19 — Initial Wor…**: Work order dated 19th August, 2009, awarded to…
- **2009-10-31 — Initial Deliv…**: Original delivery date…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclat-new-delhi/karpara-project-engineering-pvt-ltd-vs-bgr-energy-systems-ltd-ca-1090ebba