# In the matter of IVRCL Ltd. (Jharkhand Bijli Vitran Nigam Ltd. Vs. IVRCL Ltd. & Anr.) CA No. 101-2018 IN CP (IB) No. 294-7-HDB-2017

> NCLT judgment dated 2018-05-08. Citation: TCN-2018-NCLT-01446. Jharkhand Bijli Vitran Nigam Ltd. filed an application under Section 60(5) of the Insolvency…

- **Court:** NCLT
- **Order date:** 8 May 2018
- **Citation:** TCN-2018-NCLT-01446
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ivrcl-ltd-jharkhand-bijli-vitran-nigam-ltd-vs-ivrcl-ltd-anr-ca-no-101-2018-in-cp-19fdd118

## Summary

### Background

Jharkhand Bijli Vitran Nigam Ltd. filed an application under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, seeking a declaration that letters issued by the Interim Resolution Professional (IRP) to the Arbitral Tribunal are illegal and contrary to the moratorium declared by the court. The State Bank of India had initiated Corporate Insolvency Resolution Process (CIRP) against IVRCL Limited (Corporate Debtor). Disputes arose between the Applicant Company and IVRCL Limited, leading to arbitration proceedings where IVRCL filed a claim statement. The Applicant also raised a counter-claim. The IRP issued letters requesting the Arbitral Tribunal to continue proceedings for both claim and counter-claim, which the Applicant objected to, arguing they violated the

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## Facts

Jharkhand Bijli Vitran Nigam Ltd. (Applicant) filed an application under Section 60(5) of the Insolvency and Bankruptcy Code, 2016. State Bank of India (Financial Creditor) initiated Corporate Insolvency Resolution Process (CIRP) against IVRCL Limited (Corporate Debtor). The authority imposed a moratorium under Section 13 of the IBC. Disputes arose between the Applicant and IVRCL, leading to arbitration. IVRCL filed a claim statement for Rs.202,88,66,000/- for Garhwa district, Rs.174,92,04,000/- for Latehar district, and Rs.275,76,51,000/- for Palamau district. The Applicant raised a counter-claim for Rs.2,746.5 Crores. The IRP issued letters dated 30.03.2018 and 07.04.2018 requesting the Arbitral Tribunal to continue proceedings for both claim and counter-claim. The

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## Issues and analysis

### Issue 1: Whether the letters dated 30.03.2018 and 07.04.2018 addressed by the Resolution Professional to the …

**Ratio:** Section 14 of the IBC states that after the imposition of a moratorium, no proceedings

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**Reasoning:** The court reasoned that the moratorium imposed under Section 13 of the IBC prohibits any

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**Interpretation:** The moratorium provision is interpreted to protect the Corporate Debtor from

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**Application:** The court applied the ratio to the specific facts by holding that the letters

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## Parties

- **Judges:** BIKKI RAVEENDRA…
- **Appellants:** Jharkhand Bijli…
- **Respondents:** IVRCL Li…

## Timeline

- **2018-02-23 — Order for…**: Authority made an order in CP(IB) No.294/7/HDB/2017 admitting the petition filed by the…
- **2018-03-30 — IRP Letter to Arbitral…**: IRP addressed a letter to the Arbitral Tribunal for continuation of the claim of the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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