# In the matter of MCL Global Steel Pvt Ltd C.P. 20- I&BP- NCLT-MAH-2017

> NCLT judgment dated 2017-03-06. Citation: TCN-2017-NCLT-00958. Essar Projects India Ltd (EPIL), an operational creditor, filed a petition against MCL Global…

- **Court:** NCLT
- **Order date:** 6 Mar 2017
- **Citation:** TCN-2017-NCLT-00958
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/mcl-global-steel-pvt-ltd-cp-20-ibp-nclt-mah-2017-95a4f5c8

## Summary

### Background

Essar Projects India Ltd (EPIL), an operational creditor, filed a petition against MCL Global Steel Pvt. Ltd (MCL), the corporate debtor, for defaulting on a payment of ₹9,10,60,788. The petition was filed under Section 8 & 9 of the Insolvency and Bankruptcy Code, 2016, read with Rule 6 of the Insolvency and Bankruptcy Rules, 2016, seeking initiation of the Corporate Insolvency Resolution Process (CIRP). EPIL and MCL had entered into a Memorandum of Understanding (MoU) on 27.06.2013, where MCL appointed EPIL to carry out civil work, structural fabrication, and erection of building and sheds for the construction of a steel melt shop complex. EPIL raised invoices for works completed by November 30, 2014, but a substantial portion remained outstanding. EPIL sent

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## Facts

Essar Projects India Ltd (EPIL) and MCL Global Steel Pvt. Ltd (MCL) entered into a Memorandum of Understanding (MoU) on 27.06.2013, where MCL appointed EPIL to carry out civil work for the construction of a steel melt shop complex. EPIL raised invoices for works completed by November 30, 2014, but a substantial portion remained outstanding, amounting to ₹9,10,60,788, including interest. EPIL sent multiple letters to MCL requesting repayment, followed by a statutory notice on 28.12.2016. MCL responded on 03.01.2017, disputing the amount due, citing issues with the quality and timeline of construction, and lack of work completion certificates. The invoices were raised on 04.07.2014, 05.08.2014, 01.10.2014 & 10.01.2015. MCL did not raise any objection disputing the

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## Issues and analysis

### Issue 1: Whether the disputes raised by the Corporate Debtor regarding the quality and timeline of …

**Ratio:** A 'dispute' under Section 5(6) of the I&B Code must be a suit or arbitration

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**Reasoning:** The court reasoned that the Corporate Debtor raised the disputes regarding the quality

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**Interpretation:** The interpretation of 'dispute' under Section 5(6) requires that the dispute

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**Application:** The court applied the ratio to the facts by noting that the Corporate Debtor

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## Parties

- **Judges:** B.S.V. Prakash…; V. Nallasen…
- **Appellants:** M/s. Essar…
- **Respondents:** M/s MCL Global…
- **Advocates:** Ankoosh Meh…; Aviral…

## Timeline

- **2013-06-27 — Memorandum of…**: MCL appointed EPIL to carry out civil work, structural fabrication, and erection of…
- **2014-11-30 — Completion o…**: EPIL completed the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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