# In the matter of MARG LIMITED

> NCLT judgment dated 2025-04-04. Citation: TCN-2025-NCLT-01015. Electronic Corporation of Tamil Nadu Ltd. filed a petition under Section 9 of the Insolvency…

- **Court:** NCLT
- **Order date:** 4 Apr 2025
- **Citation:** TCN-2025-NCLT-01015
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chennai/marg-limited-37b2bb95

## Summary

### Background

Electronic Corporation of Tamil Nadu Ltd. filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, read with Rule 6 of the Insolvency and Bankruptcy Board of India (Petition to Adjudicating Authority) Rules, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Marg Ltd.

## Facts

Electronic Corporation of Tamil Nadu Ltd. (ECTN) floated a tender on 27.02.2009 to construct an IT building complex at Hosur.

Marg Ltd. participated in the tendering process and was selected as the successful tenderer.

A Letter of Acceptance was issued on 12.08.2010 for a revised price bid of Rs. 13,75,00,000.30/-.

A contract was entered into between ECTN and Marg Ltd. on 03.11.2010, with a completion timeline of ten months.

A supplemental agreement on 20.12.2012 enhanced the original price to Rs. 14,58,99,710/-.

Marg Ltd. failed to complete the work despite extensions, leading ECTN to terminate the contract on 20.11.2015.

ECTN invited a fresh tender and selected PSK Engineering Construction Co.

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## Issues and analysis

### Issue 1: Whether the petition filed by the Operational Creditor is to be admitted under Section 9(5) of the …

**Ratio:** Section 9(5) of the IBC, 2016, mandates the admission of a petition if the operational

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**Reasoning:** The tribunal considered the arbitral award, the lack of a stay order on the award, and

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**Interpretation:** The tribunal interpreted Section 9(5) to mean that if the operational creditor

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**Application:** The tribunal applied this interpretation to the facts of the case, noting that

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## Parties

- **Judges:** SANJIV…; Venkataraman…
- **Appellants:** Electronic…
- **Respondents:** Marg…
- **Other parties:** Balasubramanian…
- **Advocates:** M. Vij…; Aravind…; +2 more

## Timeline

- **2009-02-27 — Tender F…**: Electronic Corporation of Tamil Nadu Ltd. floated a tender to construct an IT building…
- **2010-08-12 — Letter of Acc…**: Letter of Acceptance issued to Marg Ltd. for a…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14(1) — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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