# In the matter of IVRCL Limited

> NCLT judgment dated 2024-10-03. Citation: TCN-2024-NCLT-00492. The case involves a dispute over claims made by State Bank of India (SBI), the Appellant,…

- **Court:** NCLT
- **Order date:** 3 Oct 2024
- **Citation:** TCN-2024-NCLT-00492
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ivrcl-limited-6ab700d1

## Summary

### Background

The case involves a dispute over claims made by State Bank of India (SBI), the Appellant, against IVRCL Limited, the Corporate Debtor (CD), which is undergoing liquidation. SBI had awarded a works contract to IVRCL in March 2012, which was later terminated due to poor performance. SBI filed claims with the Liquidator, which were rejected. This application challenges the rejection of those claims.

## Facts

In March 2012, IVRCL Ltd (Corporate Debtor) was awarded a works contract by Meja Urja Nigam Pvt Ltd (a subsidiary of NTPC Ltd, the Appellant) for Rs 289.76 crores. The contract was to be completed by December 2016, but was terminated in September 2016 due to IVRCL's poor performance. In September 2017, IVRCL raised a final bill of Rs 126.93 crores. IVRCL was admitted into CIRP in February 2018. In July 2019, the Appellant accepted a reduced claim of Rs 11.29 crores against IVRCL's final bill and raised a claim of Rs 1089.13 crores against IVRCL. In July 2019, liquidation of IVRCL was ordered, and a liquidator was appointed. The Liquidator advised the Appellant to file its claim under IBC, which the Appellant did on 15.04.2020. The Liquidator rejected the Appellant's

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## Issues and analysis

### Issue 1: Whether the Liquidator was justified in rejecting the Appellant's claim for unutilized Owner Issued …

**Ratio:** The Liquidator has the discretion to either accept or reject a claim based on

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**Reasoning:** The court reasoned that the contract was unilaterally terminated by the Appellant, who

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**Interpretation:** The Liquidator's role is to determine the actual dues to be paid from the

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**Application:** Since the Appellant controlled the project site after termination, the claim

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## Parties

- **Judges:** Rajeev Bh…; Sanjay…
- **Appellants:** State Bank of…
- **Respondents:** IVRCL Li…

## Timeline

- **2012-03-01 — Contract A…**: M/s IVRCL Ltd awarded works contract by Meja…
- **2016-01-01 — Contract Ex…**: Contract completion date…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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