# In the matter of Era Infra Engineering Limited No. IB-190-(PB)-2017

> NCLT judgment dated 2017-09-21. Citation: TCN-2017-NCLT-00381. The case involves two separate insolvency petitions filed under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 21 Sept 2017
- **Citation:** TCN-2017-NCLT-00381
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/era-infra-engineering-limited-no-ib-190-pb-2017-6e718d18

## Summary

### Background

The case involves two separate insolvency petitions filed under Section 7 of the Insolvency and Bankruptcy Code, 2016. The first petition, No.IB-190(PB)/2017, was filed by Union Bank of India against Era Infra Engineering Limited, claiming to be a financial creditor. The second petition, No.IB-110(PB)/2017, was filed by Alchemist Asset Reconstruction Company Limited against Tirupati Buildings & Offices Pvt. Ltd. Both cases involve the issue of whether the insolvency process can be initiated when winding-up petitions are already pending against the corporate debtors in the High Court. The Corporate Debtor, Era Infra Engineering, is an EPC contractor that has been availing credit from the Financial Creditor since 1990. In 2012, a working capital term loan of Rs. 100

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## Facts

Union Bank of India filed an insolvency petition against Era Infra Engineering Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016, claiming to be a financial creditor. Era Infra Engineering Limited is an EPC contractor that has been availing credit from Union Bank of India since 1990. In 2012, a working capital term loan of Rs. 100 crores was sanctioned. The total amount sanctioned to the Corporate Debtor on several dates is Rs. 1506.33 crores, and the amount claimed to be in default is Rs. 681.04 crores, along with an External Commercial Borrowing of USD 11,971,939.12 as of 31.05.2017. Several company petitions seeking the winding up of Era Infra Engineering Limited are pending before the Hon'ble High Court of Delhi. Alchemist Asset Reconstruction

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## Issues and analysis

### Issue 1: Whether the process under the Insolvency and Bankruptcy Code, 2016 can be triggered in the face of …

**Ratio:** The legal principle involves the interpretation of the Insolvency and Bankruptcy Code,

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**Reasoning:** The court notes conflicting views among different benches of the NCLT regarding the

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**Interpretation:** The interpretation revolves around whether the IBC overrides the provisions of

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**Application:** The court applies the differing interpretations to the specific facts of the

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## Parties

- **Judges:** R. VARADH…; DeepaKr…
- **Appellants:** Union Bank of…
- **Respondents:** Era Infra…

## Timeline

- **2012-12-31 — Loan Disbur…**: Working Capital Term Loan of Rs.100 crores…
- **2017-05-31 — Default…**: Era Infra Engineering Limited in default of…

## 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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