# In the matter of Meka Dedging Company Pvt. Ltd. Vs. Sapura Engineering & Construction (India) Pvt. Ltd. CA(AT)(Insolvency)Nos. 1289 of 2019

> NCLAT judgment dated 2019-11-19. Citation: TCN-2019-NCLAT-00102. Meka Dredging Company Pvt. Ltd., the Appellant, filed an appeal against an order dated…

- **Court:** NCLAT
- **Order date:** 19 Nov 2019
- **Citation:** TCN-2019-NCLAT-00102
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/meka-dedging-company-pvt-ltd-vs-sapura-engineering-construction-921957be

## Summary

### Background

Meka Dredging Company Pvt. Ltd., the Appellant, filed an appeal against an order dated September 23, 2019, passed by the Adjudicating Authority (National Company Law Tribunal), Mumbai Bench. The Adjudicating Authority had rejected an application filed by Meka Dredging under Section 9 of the Insolvency and Bankruptcy Code, 2016, as an 'Operational Creditor' seeking initiation of the 'Corporate Insolvency Resolution Process' against Sapura Engineering & Construction (India) Pvt. Ltd. Meka Dredging was already under liquidation.

## Facts

Meka Dredging Company Pvt. Ltd. (Appellant), already under liquidation, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, as an 'Operational Creditor' to initiate the 'Corporate Insolvency Resolution Process' against Sapura Engineering & Construction (India) Pvt. Ltd. The Adjudicating Authority (National Company Law Tribunal), Mumbai Bench, rejected this application. The Appellant argued that there was no pre-existing dispute. However, the court noted that Section 11(d) of the I&B Code prohibits a corporate debtor under liquidation from initiating such proceedings. The fact that Meka Dredging was already under liquidation is a crucial fact.

## Issues and analysis

### Issue 1: Whether a 'Corporate Debtor' under liquidation can initiate a 'Corporate Insolvency Resolution …

**Ratio:** Section 11(d) of the Insolvency and Bankruptcy Code, 2016, specifically prohibits a

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**Reasoning:** The court reasoned that allowing a company already under liquidation to initiate

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**Interpretation:** Section 11(d) is interpreted to mean that once a company is undergoing

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**Application:** In this case, Meka Dredging Company Pvt. Ltd. was already under liquidation.

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## Parties

- **Judges:** S.J. Mukhop…; Bansi Lal…; +1 more
- **Respondents:** Meka Dredging…; Sapura Engineering…
- **Advocates:** Mitesh…; Shruti P…; +1 more

## Timeline

- **2019-09-23 — Order by Adjudicating…**: The Adjudicating Authority (National Company Law Tribunal), Mumbai Bench, passed an order…
- **2019-11-19 — Appeal Pre…**: Meka Dredging Company Pvt. Ltd. preferred an appeal against the order dated September 23,…

## 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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