# In the matter of EDCL Infrastructure Limited

> NCLT judgment dated 2024-02-08. Citation: TCN-2024-NCLT-02706. This case involves an application (I.A. (IB) No. 2105/KB/2023) preferred by EDCL Infrastructure…

- **Court:** NCLT
- **Order date:** 8 Feb 2024
- **Citation:** TCN-2024-NCLT-02706
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/edcl-infrastructure-limited-36533794

## Summary

### Background

This case involves an application (I.A. (IB) No. 2105/KB/2023) preferred by EDCL Infrastructure Limited against Urban Infraprojects Private Limited under Section 60(5) read with Section 65 of the Insolvency and Bankruptcy Code, 2016, seeking directions from the Adjudicating Authority. The core issue revolves around a Company Petition (IB) No. 106/KB/2023 filed by Urban Infraprojects Private Limited against EDCL Infrastructure Limited under Section 7 of the IBC, which EDCL Infrastructure Limited seeks to dismiss. EDCL Infrastructure Limited contends that the application filed by Urban Infraprojects Private Limited is defective, unauthorized, and based on a violation of the Companies Act, 2013, and that part of the claim is barred by limitation.

## Facts

Urban Infraprojects Private Limited, acting as the Financial Creditor, initiated a Corporate Insolvency Resolution Process (CIRP) against EDCL Infrastructure Limited, the Corporate Debtor, by filing C.P. (IB) 106/KB/2023 under Section 7 of the Insolvency and Bankruptcy Code (IBC). EDCL Infrastructure Limited then filed I.A. (IB) No. 2105/KB/2023 seeking the dismissal of the Section 7 petition. EDCL Infrastructure Limited argued that the petition was defective because it was addressed to the Registrar NCLT Chennai Bench, not Kolkata. They also claimed the petition lacked proper authorization and that Urban Infraprojects violated Section 186 of the Companies Act, 2013, by providing a loan exceeding prescribed limits. The loan agreement, executed on April 12, 2019,

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## Issues and analysis

### Issue 1: Whether the company petition filed by Urban Infraprojects is defective due to being addressed to …

**Ratio:** A clerical error in the covering letter does not render the application defective if the

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**Reasoning:** The court reasoned that the error in addressing the covering letter to the Registrar NCLT

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**Interpretation:** The interpretation is that minor procedural errors that do not affect the

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**Application:** The court applied this principle to the fact that the covering letter was

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## Parties

- **Judges:** BIDISHA BA…; D. Ar…
- **Respondents:** EDCL Infrastructur…; Urban Infraproject…

## Timeline

- **2019-04-12 — Loan Agreement…**: Loan agreement executed between Urban Infraprojects Private Limited and EDCL…
- **2019-04-12 — Loan Disbursem…**: Disbursements made to the Corporate…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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