# In the matter of Kanishka Salvage and Underwater Services Private Limited CP (IB) 190-MB-C-I-2020

> NCLT judgment dated 2023-01-20. Citation: TCN-2023-NCLT-04957. Shiva Marine Salvors And Engineers, the Operational Creditor, filed a Company Petition under…

- **Court:** NCLT
- **Order date:** 20 Jan 2023
- **Citation:** TCN-2023-NCLT-04957
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/kanishka-salvage-and-underwater-services-private-limited-cp-ib-190-mb-c-i-2020-0bb5f4e1

## Summary

### Background

Shiva Marine Salvors And Engineers, the Operational Creditor, filed a Company Petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Kanishka Salvage and Underwater Services Private Limited, the Corporate Debtor, due to an outstanding debt of Rs.1,17,72,235/-. The debt arose from a sub-contract awarded to the Operational Creditor for salvage and oil removal from a grounded vessel, “M.V. Qing”. The Operational Creditor completed the work, and the vessel was successfully refloated. However, the Corporate Debtor failed to make the complete payment as per the contract terms, leading to the filing of the petition.

## Facts

Shiva Marine Salvors And Engineers (Operational Creditor) provided maintenance, salvage, and repair services, particularly underwater jobs related to ship salvage, since 2011. Kanishka Salvage and Underwater Services Private Limited (Corporate Debtor) contacted the Operational Creditor and awarded a sub-contract dated 2018-02-19 for salvage and oil removal from the grounded vessel “M.V. Qing” at WISL Jetty, Goa. The scope of work included oil removal from the ship's tanks and re-flotation of the vessel. The Operational Creditor commenced operations on 2018-03-01 and completed the work by 2018-05-05, successfully refloating the vessel. A Salvage Master issued a final report dated 2018-05-13 confirming the vessel's safe refloating. The Salvage Master sent an email on

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor is in default of a debt …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) allows an operational

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**Reasoning:** The court observed that the Corporate Debtor had failed to make complete payment as per

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**Interpretation:** The legal principle is that a default occurs when the corporate debtor fails to

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**Application:** In this case, the Corporate Debtor failed to pay the full amount due to the

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## Parties

- **Judges:** P.N. Deshmukh…; Shyam Babu…
- **Appellants:** Shiva Marine…
- **Respondents:** Kanishka Salvage…

## Timeline

- **2018-02-19 — Sub-contract…**: Corporate Debtor awarded sub-contract to Operational Creditor for salvage and oil removal…
- **2018-03-01 — Commencement of…**: Operational Creditor commenced…

## 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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