# In the matter of UTM Engineering Pvt. Ltd. IA-4081-ND-2021 in (IB)-248-ND-2019

> NCLT judgment dated 2021-10-01. Citation: TCN-2021-NCLT-00898. This case involves an application filed by Railways seeking to vacate a stay order related to a…

- **Court:** NCLT
- **Order date:** 1 Oct 2021
- **Citation:** TCN-2021-NCLT-00898
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/utm-engineering-pvt-ltd-ia-4081-nd-2021-in-ib-248-nd-2019-13c91675

## Summary

### Background

This case involves an application filed by Railways seeking to vacate a stay order related to a construction project. The project, entrusted to a Joint Venture (JV) involving UTM Engineering and Tantia Construction, involves tunnel construction. Delays have occurred, impacting the project's timeline and potentially costing the public exchequer. One of the JV partners, UTM Engineering, is undergoing liquidation. The Railways have released funds for the project and are interested in its completion. The Railways filed a Status Report in compliance with previous orders.

## Facts

The Railways filed an application to vacate a stay order related to a tunnel construction project. The project was entrusted to a Joint Venture (JV) consisting of UTM Engineering Pvt. Ltd. and Tantia Construction Limited. UTM Engineering is undergoing liquidation. The Railways have released funds for the project. The project is of national importance, and delays are costly. The Railways filed a Status Report as per court orders. The Liquidator of UTM Engineering has placed a Status Report. The Railways are interested in completing the project and are willing to work with the JV partners. The constitution of the JV cannot be changed. Another party is interested in taking over UTM Engineering as a going concern. The Railways are not interested in terminating the contract

…

## Issues and analysis

### Issue 1: Whether the stay order should be vacated to allow …

**Ratio:** The court has the power to vacate stay orders if it is in the interest of justice and

…

**Reasoning:** The court considered the national importance of the project, the potential cost of

…

**Interpretation:** The court interprets its power to vacate stay orders in light of the broader

…

**Application:** The court did not immediately vacate the stay order but directed all parties to

…

## Parties

- **Judges:** DEEPTI M…; SUMITAPURKA…
- **Appellants:** Argentium…
- **Respondents:** UTM Engineering…
- **Advocates:** Jagjit…; Surendra…; +7 more

## Timeline

- **2020-07-29 — Stay Ord…**: The Bench passed a stay order which…
- **2021-07-05 — Order Da…**: Compliance order date…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/utm-engineering-pvt-ltd-ia-4081-nd-2021-in-ib-248-nd-2019-13c91675