# In the matter of ABB India Limited C.P.(IB)No. 210-BB-2018

> NCLT judgment dated 2019-11-10. Citation: TCN-2019-NCLT-00640. M/s. Indu Projects Ltd., the Petitioner/Operational Creditor, filed C.P.(IB)No.210/BB/2018…

- **Court:** NCLT
- **Order date:** 10 Nov 2019
- **Citation:** TCN-2019-NCLT-00640
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/abb-india-limited-cpibno-210-bb-2018-d609b344

## Summary

### Background

M/s. Indu Projects Ltd., the Petitioner/Operational Creditor, filed C.P.(IB)No.210/BB/2018 under Section 9 of the IBC, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. ABB India Limited, the Respondent/Corporate Debtor. The petition alleges that the Corporate Debtor defaulted on a total amount of Rs.5,80,78,443/-, which includes principal and interest, related to a contract for design and execution on Engineering, Procurement and Construction (EPC) for Rs.72 Crores for Chhattisgarh State Power Generation Corporation Ltd. (CSPGCL). The Corporate Debtor allegedly failed to complete the supplies to suit the project commissioning by September 2011, violating the terms and conditions of the purchase order.

## Facts

M/s. Indu Projects Ltd. (IPL), the Operational Creditor, filed a petition against M/s. ABB India Limited (ABB), the Corporate Debtor, under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016. The claim pertains to a default of Rs. 5,80,78,443/-. Initially, Chhattisgarh State Power Generation Corporation Ltd. (CSPGCL) awarded a Letter of Award (LOA) to M/s. Tecpro Systems Ltd. (Tecpro) for a power project. Tecpro, in turn, awarded a contract to IPL for providing Balance of Plant. Subsequently, IPL awarded the same work to ABB for design and execution on Engineering, Procurement and Construction (EPC) for Rs.72 Crores. IPL issued a purchase order to ABB, which included clauses for price basis, price variation, and payment terms. ABB allegedly failed to complete

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## Issues and analysis

### Issue 1: Whether the Petitioner falls under the definition of Operational Creditor and the claim can be …

**Ratio:** The IBC defines an Operational Creditor as a person to whom an operational debt is owed.

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**Reasoning:** The NCLT considered the Purchase order dated 16.06.2010 and Tripartite Agreement dated

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**Interpretation:** The NCLT interpreted the provisions of the IBC to mean that if the debt arises

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**Application:** The NCLT applied this interpretation to the facts of the case, noting that the

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## Parties

- **Judges:** Rajeswara Rao…; Ashok Kumar…
- **Appellants:** Indu Projec…
- **Respondents:** ABB India L…

## Timeline

- **2009-08-25 — Letter of Award (LOA)…**: Chhattisgarh State Power Generation Corporation Ltd. (CSPGCL) awarded a Letter of Award…
- **2009-12-15 — Contract to Indu…**: M/s. Tecpro System Ltd. awarded the contract for providing Balance of Plant for Extn.…

## 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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