# In the matter of Deepak Cables (India) Ltd. I.A. Nos.379,380,381 & 436-2018 In C.P. (IB) No. 154-BB-2017

> NCLT judgment dated 2019-01-30. Citation: TCN-2019-NCLT-05106. The case involves applications (I.A. Nos. 379/2018, 380/2018, 381/2018, and 436/2018) filed by…

- **Court:** NCLT
- **Order date:** 30 Jan 2019
- **Citation:** TCN-2019-NCLT-05106
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/deepak-cables-india-ltd-ia-nos379380381-436-2018-in-cp-ib-no-154-bb-2017-6b18e566

## Summary

### Background

The case involves applications (I.A. Nos. 379/2018, 380/2018, 381/2018, and 436/2018) filed by Power Grid Corporation of India Limited (POWERGRID/PGCI) in a Corporate Insolvency Resolution Process (CIRP) initiated against Deepak Cables (India) Limited (DCIL). POWERGRID sought directions to the Interim Resolution Professional (IRP) to include their claims in the CIRP, issue notices of Committee of Creditors (CoC) meetings, and allow their participation. I.A. No. 436/2018 specifically sought to implead POWERGRID in the CIRP. The applications were opposed by the Resolution Professional (RP), primarily on the grounds that POWERGRID's claims were disputed and subject to ongoing arbitration proceedings, and that POWERGRID did not qualify as an operational creditor under the

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## Facts

Power Grid Corporation of India Limited (POWERGRID) filed applications seeking to be included in the Corporate Insolvency Resolution Process (CIRP) of Deepak Cables (India) Limited (DCIL). POWERGRID claimed to be an operational creditor based on a contract for the supply of ACSR Zebra conductors. Deepak Cables allegedly breached the terms of the contract, leading to its termination by POWERGRID. POWERGRID initiated arbitration proceedings to recover its dues. DCIL also initiated arbitration proceedings against POWERGRID. The Resolution Professional (RP) rejected POWERGRID's claim, arguing that it was disputed and subject to ongoing arbitration. POWERGRID argued that it was entitled to notice of Committee of Creditors (CoC) meetings and participation in the CIRP. The RP

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## Issues and analysis

### Issue 1: Whether Power Grid Corporation of India Limited (POWERGRID) qualifies as an operational creditor of …

**Ratio:** An operational creditor is defined under Section 5(20) of the IBC as a person to whom an

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**Reasoning:** The court reasoned that POWERGRID's claim was contingent upon the outcome of the

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**Interpretation:** The court interpreted the definition of 'operational creditor' and 'operational

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**Application:** The court applied the ratio to the facts of the case, finding that POWERGRID's

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## Parties

- **Judges:** Rajeswara Rao…; Ashok Kumar…
- **Appellants:** Power Grid…
- **Respondents:** Deepak Cables…

## Timeline

- **2011-11-08 — Supply Contrac…**: Deepak Cables was awarded the supply contract on 08.11.2011 under Notification of Award…
- **2015-03-01 — Breach of C…**: In the year March - April 2015 Deepak Cables committed breach of terms of the NoA and…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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