# In the matter of MCL Global Steel Pvt. Ltd. Vs Essar Projects India Ltd. & Anr. CA (AT) No. 29-2017

> NCLAT judgment dated 2017-05-31. Citation: TCN-2017-NCLAT-00167. M/s MCL Global Steel Pvt. Ltd. & Anr. (Corporate Debtor) filed an appeal against the order…

- **Court:** NCLAT
- **Order date:** 31 May 2017
- **Citation:** TCN-2017-NCLAT-00167
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/mcl-global-steel-pvt-ltd-vs-essar-projects-india-ltd-anr-ca-6ca84ac2

## Summary

### Background

M/s MCL Global Steel Pvt. Ltd. & Anr. (Corporate Debtor) filed an appeal against the order dated 6th March 2017 passed by the Adjudicating Authority (National Company Law Tribunal), Mumbai Bench, which admitted the application preferred by Respondents M/s Essar Projects India Limited and Anr. (Operational Creditor) under section 8 and 9 of the Insolvency and Bankruptcy Code, 2016 for initiation of Corporate Insolvency Resolution Process. The appellant argued that the Adjudicating Authority passed an ex parte order without prior notice or intimation of hearing, violating the principles of natural justice. They also contended that the Operational Creditor concealed the existence of a dispute between the parties and that the Adjudicating Authority failed to notice

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## Facts

M/s MCL Global Steel Pvt. Ltd. (Corporate Debtor) entered into a Memorandum of Understanding with M/s Essar Projects India Limited (Operational Creditor) for construction work. Disputes arose regarding the quality of construction and timely completion of the work. The Operational Creditor issued a notice dated 26th October 2016 under Section 433(e) and 434 of the Companies Act 1956, claiming outstanding dues of Rs. 6,83,06,077. The Corporate Debtor replied on 21st November 2016, disputing the claim and raising concerns about the quality of construction, timelines, and reconciliation of accounts. The Operational Creditor then filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, for initiation of Corporate Insolvency Resolution Process. The

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority was justified in admitting the application for Corporate …

**Ratio:** The principles of natural justice require that a party should be given a reasonable

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**Reasoning:** The court relied on previous judgments, including the Sree Metaliks Limited case, which

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**Interpretation:** The court interpreted the provisions of the Insolvency and Bankruptcy Code,

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**Application:** In this case, the Adjudicating Authority admitted the application for Corporate

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## Parties

- **Judges:** S.J. Mukhop…; Balvinder…
- **Respondents:** M/s MCL Global…; M/s Essar…

## Timeline

- **2013-08-01 — Disputes…**: Corporate Debtor raised concerns regarding the quality of construction work and…
- **2014-11-30 — Disputes…**: Corporate Debtor raised concerns regarding the quality of construction work and…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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