# In the matter of India Power Corporation Limited

> NCLT judgment dated 2023-07-17. Citation: TCN-2023-NCLT-02495. Gupta Power Infrastructure Limited, the Operational Creditor, filed a Company Petition under…

- **Court:** NCLT
- **Order date:** 17 Jul 2023
- **Citation:** TCN-2023-NCLT-02495
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/india-power-corporation-limited-6b49966e

## Summary

### Background

Gupta Power Infrastructure Limited, the Operational Creditor, filed a Company Petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against India Power Corporation Limited, the Corporate Debtor, for failing to pay a sum of Rs. 5,92,76,817/-. The Operational Creditor claimed that the Corporate Debtor failed to make payments for materials supplied and erection work completed for two 220/132KV AIS Substation and 132 KV Indoor Type GIS sub-stations at Burdwan District of West Bengal. The Corporate Debtor disputed the claim, alleging pre-existing disputes and defaults by the Operational Creditor in submitting Performance Bank Guarantees.

## Facts

Gupta Power Infrastructure Limited (Operational Creditor) filed a petition against India Power Corporation Limited (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, claiming a default of Rs. 5,92,76,817/-. The claim comprised Rs. 4,76,04,630/- as principal and Rs. 1,16,72,186/- as interest, calculated at 18% per annum until December 31, 2019. The Operational Creditor supplied materials and completed erection work for the Corporate Debtor's substation projects during 2017-18, issuing invoices totaling Rs. 21,64,21,762/-. The Corporate Debtor made part payments totaling Rs. 16,46,28,611/-, leaving a balance of Rs. 4,76,04,630/- towards principal. The Corporate Debtor issued a letter dated 03 December, 2019, seeking to terminate the Purchase

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## Issues and analysis

### Issue 1: Whether the petition filed by the Operational Creditor under Section 9 of the Insolvency and …

**Ratio:** The existence of a pre-existing dispute between the operational creditor and the

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**Reasoning:** The Adjudicating Authority observed that the Corporate Debtor had notified the

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**Interpretation:** The legal issue revolves around the interpretation of Section 9 of the

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**Application:** In this case, the Adjudicating Authority applied the ratio of Mobilox

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## Parties

- **Judges:** RohitKa…; Balraj…
- **Appellants:** Gupta Power…
- **Respondents:** INDIA POWER…
- **Advocates:** Shaunak…; Shruti S…; +9 more

## Timeline

- **2017-18-01 — Project Exe…**: The Corporate Debtor approached the Operational Creditor for supply, erection, testing…
- **2019-08-05 — Work Completion…**: Operational Creditor claims work…

## 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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