# In the matter of Scorpio Engineering Private Limited C.P.(IB) No.372-BB-2019

> NCLT judgment dated 2020-05-21. Citation: TCN-2020-NCLT-01340. M/s. I & B Engineers (P) Limited filed C.P. (IB) No.372/BB/2019 under Section 9 of the IBC,…

- **Court:** NCLT
- **Order date:** 21 May 2020
- **Citation:** TCN-2020-NCLT-01340
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/scorpio-engineering-private-limited-cpib-no372-bb-2019-14e52005

## Summary

### Background

M/s. I & B Engineers (P) Limited filed C.P. (IB) No.372/BB/2019 under Section 9 of the IBC, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. Scorpio Engineering Private Limited, alleging a default of Rs. 79,03,739.00, including interest. The Respondent/Corporate Debtor opposed the petition, citing a tripartite agreement involving Indian Power Corporate Haldia Limited (IPCHL), now known as Hiranmaye Energy Limited, where IPCHL was to make direct payments to the Petitioner. The Petitioner claimed the Respondent was liable for the debt, while the Respondent argued that IPCHL was responsible and that there was a pre-existing dispute.

## Facts

M/s. I & B Engineers (P) Limited (Operational Creditor/Petitioner) claimed M/s. Scorpio Engineering Private Limited (Corporate Debtor/Respondent) defaulted on a total amount of Rs. 79,03,739.00, including Rs. 32,35,375.00 towards interest at 24% p.a. up to June 21, 2019. The Operational Creditor supplied spare parts, accessories, and components to the Corporate Debtor, with an invoice dated August 11, 2016, based on purchase orders from 2015 and 2019. The Corporate Debtor opposed the petition, stating they entered a contract with Indian Power Corporate Haldia Limited (IPCHL), now Hiranmaye Energy Limited, for a coal handling plant, and the Petitioner was a contractor for this project. A tripartite agreement existed where IPCHL would directly pay the Petitioner. The

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## Issues and analysis

### Issue 1: Whether the Petitioner prima facie proved that the Debt in question is liable to be paid by the …

**Ratio:** The burden of proof lies on the operational creditor to establish a prima facie case of

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**Reasoning:** The court found that the Petitioner failed to establish a prima facie case because of the

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**Interpretation:** The legal principle is that the operational creditor must demonstrate a clear

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**Application:** In this case, the existence of the tripartite agreement and the direct payments

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## Parties

- **Judges:** Rajeswara Rao…; Ashutosh C…
- **Appellants:** M/s. I & B…
- **Respondents:** M/s. Scorpio…

## Timeline

- **2015-01-01 — Purchase Order…**: Purchase Orders were…
- **2016-08-11 — Invoice…**: Invoice dated 11th August 2016 for supplied…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 138 — Discharge order](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-138)

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