# In the matter of  Sree Ganesh Constructions vs. IVRCL Limited Comp. App. (AT) (CH) (Ins.) No. 333 of 2021

> NCLAT judgment dated 2023-03-29. Citation: TCN-2023-NCLAT-00647. Sree Ganesh Constructions, an operational creditor, filed an appeal against an order dated…

- **Court:** NCLAT
- **Order date:** 29 Mar 2023
- **Citation:** TCN-2023-NCLAT-00647
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/sree-ganesh-constructions-vs-ivrcl-limited-comp-app-692ea0f8

## Summary

### Background

Sree Ganesh Constructions, an operational creditor, filed an appeal against an order dated 27.08.2021 passed by the National Company Law Tribunal (NCLT), Bench-II, Hyderabad, in I.A. No. 1027 of 2019 in CP (IB) No. 294/7/HDB/2017. The NCLT had dismissed the application filed by Sree Ganesh Constructions seeking a direction to the liquidator of IVRCL Limited, the corporate debtor, to pay a sum of Rs.1,36,75,392. The corporate insolvency resolution process (CIRP) was initiated against IVRCL Limited on 23.02.2018, and subsequently, as no resolution plan was received, the NCLT allowed the application for liquidation on 26.07.2019.

## Facts

Sree Ganesh Constructions (Appellant) entered into an agreement with IVRCL Limited (Corporate Debtor) to execute work as a sub-contractor for a project. The time period for execution was from 29.09.2015 to 31.07.2016, later extended to 31.07.2017. The Appellant submitted that based on the Final Quality Check Certificate dated 30.05.2018, the Employer raised a Final Bill dated 21.09.2018 for Rs.1,09,66,484.00. The Appellant contended that despite requests to the Resolution Professional and Liquidator, 95% of the payments were not released. The Corporate Debtor made payments for previous bills but not for the 12th and final bill. The Appellant submitted Form B on 24.07.2019. The Corporate Debtor was admitted into CIRP on 23.02.2018, with a completion date of 27.11.2018.

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## Issues and analysis

### Issue 1: Whether the work was executed prior to the initiation of the Corporate Insolvency Resolution …

**Ratio:** As per the terms of the Insolvency and Bankruptcy Code (IBC), 2016, for any work done

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**Reasoning:** The NCLAT reasoned that the work was executed prior to the CIRP period. The 12th bill

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**Interpretation:** The interpretation of the IBC is that claims related to work done before the

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**Application:** In this case, the work was completed before the CIRP initiation on 23.02.2018.

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## Parties

- **Judges:** M. Venu…; Shreesha…; +1 more
- **Appellants:** Sree Ganesh…
- **Respondents:** IVRCL Li…

## Timeline

- **2015-09-29 — Agreement…**: Agreement between Sree Ganesh Constructions…
- **2016-07-31 — Original Comple…**: Original scheduled completion…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61 — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

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