# In the mater of IVRCL Limited

> NCLT judgment dated 2023-12-14. Citation: TCN-2023-NCLT-00245. The case involves an application (IA No.353 of 2021) filed under section 60(5) of the…

- **Court:** NCLT
- **Order date:** 14 Dec 2023
- **Citation:** TCN-2023-NCLT-00245
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/in-the-mater-of-ivrcl-limited-6cdb72bf

## Summary

### Background

The case involves an application (IA No.353 of 2021) filed under section 60(5) of the Insolvency and Bankruptcy Code, 2016 by M/s.Max Infra (I) Limited in a corporate insolvency resolution process (CIRP) against IVRCL Limited. The dispute arises from an arbitral award in favor of M/s.Max Infra/IVRCL JV related to a railway project tender issued by Konkan Railway Corporation Limited. The applicant seeks directions for the liquidator to open a current account for the JV, for KRCL to pay the arbitral award amount into that account, and for the liquidator to disburse litigation costs to the applicant from the award amount.

## Facts

Konkan Railway Corporation Limited invited tenders for a railway project. M/s.IVRCL Limited and M/s.UAN Raju Constructions Limited (later M/s.Max Infra (I) Limited) formed a joint venture (JV) to bid for the project. The tender was accepted, and the project was awarded to the JV. Disputes arose, leading to arbitration. The Arbitral Tribunal awarded Rs.4,52,05,760/- in favor of the JV. Before the award, IVRCL entered CIRP and subsequently liquidation. M/s.Max Infra sought directions for the liquidator to open a new account for the JV, for KRCL to pay the award into that account, and for the liquidator to reimburse litigation expenses of Rs.1,69,00,000/- to M/s.Max Infra. The applicant's counsel conceded before the Arbitral Tribunal that the maximum expenditure incurred

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## Issues and analysis

### Issue 1: Whether the Liquidator should be directed to open a current account in the name of M/s.Max Infra – …

**Ratio:** The NCLT determined that the better course would be to transfer the amount to the account

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**Reasoning:** The court reasoned that since the corporate debtor is in liquidation, the liquidator is

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**Interpretation:** This reflects the principle that during liquidation, the liquidator assumes

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**Application:** The NCLT applied this principle by directing the arbitral award amount to be

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## Parties

- **Judges:** Rajeev Bh…; Sanjay…
- **Appellants:** M/s.Max Infra (I)…
- **Respondents:** IVRCL Li…; M/s. IVRCL…

## Timeline

- **2004-01-14 — Tender Invi…**: Konkan Railway Corporation Limited invited tenders/bids for the construction of single…
- **2004-02-12 — Tender Acce…**: The tender of M/s.Max Infra was…

## 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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