# In the matter of Nandi Engineering Limited C.P.(IB) No.32-BB-2017

> NCLT judgment dated 2019-01-04. Citation: TCN-2019-NCLT-05324. M/s. IL&FS Engineering and Construction Co. Ltd. (IECCL) filed a petition under Section 9 of…

- **Court:** NCLT
- **Order date:** 4 Jan 2019
- **Citation:** TCN-2019-NCLT-05324
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/nandi-engineering-limited-cpib-no32-bb-2017-af0da6c3

## Summary

### Background

M/s. IL&FS Engineering and Construction Co. Ltd. (IECCL) filed a petition under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. Nandi Engineering Limited (NEL). The claim arises from an outstanding amount of Rs. 12,48,00,000/- due to IECCL for providing construction services related to the Bangalore-Mysore Infrastructure Corridor Project. The key issue revolves around the assignment of debt and the involvement of Nandi Economic Corridor Enterprises Ltd. (NECE) in the payment arrangement, including a proposed land transfer in lieu of cash payment. The petitioner claims that despite agreements and MOUs, the debt remains unpaid, and the respondent has failed to fulfill its

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## Facts

M/s. IL&FS Engineering and Construction Co. Ltd. (IECCL), formerly known as Maytas Infra Limited, is the operational creditor. M/s. Nandi Engineering Limited (NEL) is the corporate debtor. IECCL provided construction services for the Bangalore-Mysore Infrastructure Corridor Project. NEL owes IECCL Rs. 12,48,00,000/- for these services. The Government of Karnataka entered into a Tripartite Agreement with Nandi Infrastructure Corridor Enterprise Ltd. (NICE), granting NICE exclusive rights for the Bangalore-Mysore Infrastructure Corridor Project. NICE assigned its right to construct Section-A of the project to Nandi Economic Corridor Enterprises Ltd. (NECE). NEL was awarded the contract for construction of 61 KMs of the Peripheral Road, Link Road, and Expressway by

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## Issues and analysis

### Issue 1: Whether the application filed under …

**Ratio:** Section 9 of the IBC, 2016 allows an operational creditor to initiate CIRP against a

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**Reasoning:** The NCLT considered the documents and arguments presented by both parties. It noted that

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**Interpretation:** Section 9 of the IBC provides a mechanism for operational creditors to recover

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**Application:** The NCLT found that the application was in accordance with the law, the debt

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## Parties

- **Judges:** Rajeswara Rao…; Ashok Kumar…
- **Appellants:** M/s. IL&FS…
- **Respondents:** M/s. Nandi…

## Timeline

- **2004-03-15 — Agreement…**: Agreement between IL&FS Engineering and Construction Company Limited (IECCL) and Nandi…
- **2008-12-11 — NEL Lett…**: NEL letter No.NEL/FO/12/262 acknowledging additional expenditure claims of Rs.12.48 Cr by…

## 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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