# In the matter of Bihar E-Governance Services & Technologies Limited

> NCLT judgment dated 2024-04-24. Citation: TCN-2024-NCLT-01625. The case pertains to a Company Petition (IB) No. 236/KB/2023 filed under Section 10 of the…

- **Court:** NCLT
- **Order date:** 24 Apr 2024
- **Citation:** TCN-2024-NCLT-01625
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/bihar-e-governance-services-technologies-limited-109bb22e

## Summary

### Background

The case pertains to a Company Petition (IB) No. 236/KB/2023 filed under Section 10 of the Insolvency and Bankruptcy Code, 2016, read with Rule 7 of the Insolvency and Bankruptcy Rules, 2016, by Bihar E-Governance Services & Technologies Limited, seeking to initiate the Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor is a special purpose vehicle (SPV) with 50-50 per cent shareholding between IL&FS and Bihar State Electronics Development Corporation Limited (Beltron). Beltron and the Corporate Debtor had entered into a consultancy services agreement in 2007, with Beltron issuing project engagement work orders. Later, IL&FS Technologies Limited was appointed as a project co-ordinator. Beltron expressed its intention to terminate the

…

## Facts

The Corporate Debtor, Bihar E-Governance Services & Technologies Limited, is an SPV with 50-50 shareholding between IL&FS and Beltron. A consultancy services agreement was established between the Corporate Debtor and Beltron on May 24, 2007, leading to Beltron issuing project engagement work orders. On April 18, 2013, IL&FS Technologies Limited was appointed as a project co-ordinator. However, on October 11, 2018, Beltron expressed its intention to terminate the agreement due to the Corporate Debtor's poor performance and financial health. The Corporate Debtor informed Beltron on June 03, 2019, that it could not execute orders due to outstanding dues of Rs. 2.63 Crore payable by Beltron. The Corporate Debtor's revenue declined due to various reasons,

…

## Issues and analysis

### Issue 1: Whether the application filed under Section 10 of the Insolvency and Bankruptcy Code, 2016, for …

**Ratio:** Section 10 of the Insolvency and Bankruptcy Code, 2016, allows a corporate debtor to

…

**Reasoning:** The court found that the Corporate Debtor had defaulted in paying its creditors, with the

…

**Interpretation:** Section 10 provides a mechanism for corporate debtors facing financial distress

…

**Application:** The court applied Section 10 to the facts of the case, noting that the

…

## Parties

- **Judges:** BIDISHA BA…; D. Ar…
- **Respondents:** Bihar E-Governance…

## Timeline

- **2007-05-24 — Consultancy Services…**: The Corporate Debtor and Beltron entered…
- **2013-04-18 — Memorandum and…**: The Corporate Debtor and IL&FS Technologies Limited entered into a memorandum and…

## Legal provisions

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

---

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-division-bench-court-i-chenn/bihar-e-governance-services-technologies-limited-109bb22e