# In the matter of Central Coalfields Limited

> NCLT judgment dated 2024-04-26. Citation: TCN-2024-NCLT-01571. The case involves an application under Section 9 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 26 Apr 2024
- **Citation:** TCN-2024-NCLT-01571
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/central-coalfields-limited-715a44e5

## Summary

### Background

The case involves an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, by G-Tech Construction and Fabricators (Operational Creditor) to initiate the Corporate Insolvency Resolution Process (CIRP) against Central Coalfields Limited (Corporate Debtor). The Operational Creditor claimed default on payments for work orders related to 'Repair and maintenance' and 'Construction' projects. The Corporate Debtor allegedly failed to make timely payments despite repeated requests and reminders.

## Facts

G-Tech Construction and Fabricators (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against Central Coalfields Limited (Corporate Debtor). The Operational Creditor is a registered Partnership Firm and an MSME unit. The claim arises from two work orders: Site-1 dated 28.12.2017 for 'Repair and maintenance' and Site-2 dated 24.01.2018 for 'Construction'. The Operational Creditor claims that the Corporate Debtor has unequivocally admitted and acknowledged that the actual work was completed within the contractual completion date. Completion Certificates were issued by the Corporate Debtor. The Operational Creditor alleges that the Corporate Debtor failed to make timely payments despite repeated

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## Issues and analysis

### Issue 1: Whether the application under …

**Ratio:** The ratio is that an application under Section 9 of the IBC can only be admitted if there

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**Reasoning:** The court reasoned that the Corporate Debtor had raised disputes regarding the quality of

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**Interpretation:** The interpretation is that the existence of a pre-existing dispute and the

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**Application:** In this case, the court applied the ratio and reasoning to the facts and found

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## Parties

- **Judges:** BIDISHA BA…; Balraj…
- **Appellants:** G-Tech Constructio…
- **Respondents:** Central Coalfields…

## Timeline

- **2017-12-28 — Work Order fo…**: A Work Order for Site-1 was awarded to the…
- **2018-01-24 — Work Order fo…**: A Work Order for Site-2 was awarded to the…

## 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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