# 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-04956. Shiva Marine Salvors And Engineers, the Operational Creditor, filed a Company Petition under…

- **Court:** NCLT
- **Order date:** 20 Jan 2023
- **Citation:** TCN-2023-NCLT-04956
- **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-2020-52814413

## Summary

### Background

Shiva Marine Salvors And Engineers, the Operational Creditor, filed a Company Petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Kanishka Salvage and Underwater Services Private Limited, the Corporate Debtor, due to unpaid debt. The Operational Creditor provided salvage and repair services, including oil removal and re-floating of a vessel named M.V. Qing, under a sub-contract awarded by the Corporate Debtor. The Corporate Debtor made partial payments, but a significant amount remained outstanding, 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. On 19.02.2018, Kanishka Salvage and Underwater Services Private Limited (Corporate Debtor) awarded a sub-contract to the Operational Creditor for salvage and oil removal from the grounded vessel “M.V. Qing” at WISL Jetty, Goa. The Operational Creditor commenced operations on 01.03.2018 and completed the work by 05.05.2018, successfully refloating the vessel. A Salvage Master issued a Final Report on 13.05.2018 confirming the vessel's safe refloating. The Corporate Debtor issued a completion certificate dated 27.06.2018. As per the contract dated 19.02.2018, the Corporate Debtor was to pay

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## Issues and analysis

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

**Ratio:** The Insolvency and Bankruptcy Code, 2016, defines 'debt' as a liability or obligation in

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

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**Interpretation:** The court interpreted the terms 'debt' and 'default' as defined under the IBC,

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**Application:** The court applied the definition of 'debt' and 'default' to the facts of 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 — Operations Co…**: Operational Creditor…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/kanishka-salvage-and-underwater-services-private-limited-cp-ib-190-mb-c-i-2020-52814413