# In the matter of ATMASTCO LTD

> NCLT judgment dated 2025-08-29. Citation: TCN-2025-NCLT-01317. Valiance Engineers Private Limited filed an application under Section 9 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 29 Aug 2025
- **Citation:** TCN-2025-NCLT-01317
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-cuttack/atmastco-ltd-8e593f40

## Summary

### Background

Valiance Engineers Private Limited filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Atmastco Limited, claiming an operational debt of Rs. 1,82,08,965/-. The date of default was stated as 22.12.2023.

## Facts

Valiance Engineers Private Limited (Operational Creditor) filed an application to initiate CIRP against Atmastco Limited (Corporate Debtor) under Section 9 of the IBC.

The Operational Creditor claimed an operational debt of Rs. 1,82,08,965/- with a date of default of 22.12.2023.

The Corporate Debtor was engaged by Tata Steel Ltd. for the execution of EPC work.

The Operational Creditor was engaged by the Corporate Debtor as a sub-contractor for the said EPC work.

The Corporate Debtor terminated the sub-contractor agreement with the Operational Creditor on 23.11.2023.

The Operational Creditor raised an invoice for Rs. 4,76,60,469/- after the termination of the contract.

The Corporate Debtor acknowledged the invoice but sought time to reconcile accounts.

…

## Issues and analysis

### Issue 1: Whether there exists an operational debt exceeding the threshold as required under Section 4 of the …

**Ratio:** The NCLT determined that the outstanding debt, after considering the payments made and

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**Reasoning:** The NCLT considered the settlement agreement, the invoices, and the payments made by the

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**Interpretation:** The threshold for initiating CIRP under Section 4 of the IBC is met when the

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**Application:** In this case, the NCLT found that the outstanding debt exceeded the threshold,

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## Parties

- **Judges:** Deep Chandr…; Banwari Lal…
- **Appellants:** Valiance Engineers…
- **Respondents:** Atmastco L…
- **Other parties:** Atul…; Sambhu Lal…
- **Advocates:** Sidharth K…; Akash…; +3 more

## Timeline

- **2023-11-23 — Termination of…**: The Corporate Debtor terminated the sub-contractor agreement with the Operational…
- **2023-11-30 — Invoice R…**: The Operational Creditor raised an invoice for Rs. 4,76,60,469/- after the termination of…

## 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)

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