# In the matter of ACC Ltd. CP No. 1681-I&BC-2017

> NCLT judgment dated 2018-02-16. Citation: TCN-2018-NCLT-01816. The case involves a Company Petition filed under Section 9 of the Insolvency & Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 16 Feb 2018
- **Citation:** TCN-2018-NCLT-01816
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/acc-ltd-cp-no-1681-ibc-2017-96167076

## Summary

### Background

The case involves a Company Petition filed under Section 9 of the Insolvency & Bankruptcy Code, 2016 by CG Power & Industrial Solutions Ltd. (Petitioner) against ACC Ltd. (Corporate Debtor). The petition is based on the Corporate Debtor's alleged default in payment of ₹80,88,364.55 as of 30.09.2017, stemming from an Arbitral Award dated 15.09.2002. This award directed Idcol Cement Ltd. (later merged into ACC Ltd.) to pay ₹10,70,834.50 plus interest to the Petitioner from 12.12.1996. The dispute originates from contracts for equipment supply and erection where delays led to liquidated damages and invocation of bank guarantees. The Petitioner initiated arbitration, resulting in the aforementioned award. ACC Ltd. challenged the award, and an appeal is pending

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## Facts

CG Power & Industrial Solutions Ltd. (Petitioner) entered into contracts with Idcol Ltd. (later merged into ACC Ltd., the Corporate Debtor) for equipment supply and erection. Delays occurred, leading to liquidated damages and invocation of bank guarantees. The Petitioner initiated arbitration, resulting in an award dated 15.09.2002 in their favor for ₹10,70,834.50 plus interest. ACC Ltd. acquired Idcol Cement Ltd. and became liable for the outstanding dues. ACC Ltd. challenged the arbitral award, and an appeal (ARBA 17/2005) is pending before the High Court of Orissa. No stay has been granted against the award's execution. The Petitioner filed an execution petition (77/2005) to recover ₹72,36,000 in July 2015. Subsequently, the Petitioner filed a Company Petition

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## Issues and analysis

### Issue 1: Whether the pendency of an appeal under Section 37 of the Arbitration and Conciliation Act, 1996, …

**Ratio:** The pendency of an appeal against an arbitral award constitutes a 'plausible dispute'

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**Reasoning:** The NCLT reasoned that the definition of 'dispute' under Section 5(6) of the IBC includes

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**Interpretation:** The court interpreted the term 'existence of dispute' broadly, encompassing any

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**Application:** In this case, the Corporate Debtor had preferred an appeal under Section 37 of

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## Parties

- **Judges:** B.S.V. Prakash…; V. Nallasen…
- **Appellants:** CG Power and…
- **Respondents:** ACC L…

## Timeline

- **1996-12-12 — Imposition of…**: Date from which interest is calculated…
- **1997-07-05 — Petitioner Invokes…**: The Petitioner invoked arbitration due to a dispute arising from Idcol Cements wrongfully…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(6) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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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/nclt-chandigarh/acc-ltd-cp-no-1681-ibc-2017-96167076