# In the matter of India Power Corporation Limited

> NCLT judgment dated 2023-07-17. Citation: TCN-2023-NCLT-02492. Gupta Power Infrastructure Limited, the Operational Creditor, filed a Company Petition under…

- **Court:** NCLT
- **Order date:** 17 Jul 2023
- **Citation:** TCN-2023-NCLT-02492
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/india-power-corporation-limited-9b871253

## 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. The petition was based on the Corporate Debtor's alleged failure to pay a sum of Rs. 5,92,76,817, comprising principal and interest, for materials and services provided. The Corporate Debtor contested the claim, asserting pre-existing disputes and deficiencies in the Operational Creditor's performance.

## Facts

Gupta Power Infrastructure Limited (Operational Creditor) claimed that India Power Corporation Limited (Corporate Debtor) failed to pay Rs. 5,92,76,817/- for materials and services provided between January 2018 and August 2019. The Operational Creditor supplied materials and completed erection work, raising invoices totaling Rs. 21,64,21,762/-, but received only Rs. 16,46,28,611/-. The Corporate Debtor acknowledged a principal amount of Rs. 4,76,04,630/- as due. The Operational Creditor issued a demand notice in Form 3 on 26 August, 2019, seeking Rs. 5,49,58,929.47. The Corporate Debtor claimed that the Operational Creditor defaulted in submitting Performance Bank Guarantees and Advance Bank Guarantees, and that there were pre-existing disputes regarding the quality

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## Issues and analysis

### Issue 1: Whether there existed pre-existing disputes between the Operational Creditor and the Corporate …

**Ratio:** The existence of a genuine pre-existing dispute, notified to the operational creditor

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**Reasoning:** The court relied on the Supreme Court's judgments in Innoventive Industries Limited vs.

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**Interpretation:** The term 'dispute' is interpreted broadly to include any plausible contention

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**Application:** The court applied the ratio to the facts by examining the correspondence

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## Parties

- **Judges:** RohitKa…; Balraj…
- **Appellants:** Gupta Power…
- **Respondents:** INDIA POWER…

## Timeline

- **2020-02-10 — Board Reso…**: Board Resolution dated 10 February, 2020, authorized filing of CIRP against India Power…
- **2020-12-16 — Petition…**: The present petition was filed on 16 December,…

## 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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