# In the matter of Mecon Limited

> NCLT judgment dated 2024-03-05. Citation: TCN-2024-NCLT-02220. The case involves an application under Section 9 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 5 Mar 2024
- **Citation:** TCN-2024-NCLT-02220
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/mecon-limited-c7c41598

## Summary

### Background

The case involves an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, filed by Mr. Pramod Singh, the sole proprietor of M/s. N.P. Construction, against M/s. MECON Limited, seeking to initiate the Corporate Insolvency Resolution Process (CIRP). The operational debt claimed is Rs. 66,27,45,488/-, including a principal amount of Rs. 7,79,25,442/- awarded by the Jharkhand Micro Small and Medium Enterprises Facilitation Council (JMSMEFC) and interest of Rs. 58,48,20,066/-. The date of default is claimed as August 24, 2021. The legitimacy of the award is under challenge before the Jharkhand High Court. The matter is pending before the Supreme Court.

## Facts

Mr. Pramod Singh, operating as M/s. N.P. Construction, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against M/s. MECON Limited, claiming to be an operational creditor. The total debt claimed is Rs. 66,27,45,488/-, which includes a principal amount of Rs. 7,79,25,442/- awarded by the Jharkhand Micro Small and Medium Enterprises Facilitation Council (JMSMEFC) and interest of Rs. 58,48,20,066/-. The date of default is claimed as August 24, 2021. Work orders were issued to the Operational Creditor for various tasks at Bokaro Steel Plant between 2005 and 2009. The Operational Creditor completed the work and issued invoices between November 2011 and August 2018. As no payment was made, the Operational Creditor filed an application before

…

## Issues and analysis

### Issue 1: Whether the application under Section 9 of the Insolvency and Bankruptcy Code, 2016 is maintainable …

**Ratio:** The principle of judicial comity and the need to avoid conflicting decisions dictate that

…

**Reasoning:** The NCLT reasoned that since the legitimacy of the JMSMEFC award, which forms the basis

…

**Interpretation:** The interpretation involves balancing the provisions of the IBC with the

…

**Application:** Given that the Special Leave to Appeal is pending before the Supreme Court, the

…

## Parties

- **Judges:** BIDISHA BA…; SHRI. D.A…
- **Appellants:** PRAMOD…
- **Respondents:** M/s. MECON…

## Timeline

- **2005-05-24 — Work Order…**: Work order issued to the Operational Creditor for erection of mechanical P&E and…
- **2008-10-01 — Work Order…**: Work order issued to the Operational Creditor for handling, storage, erection, testing…

## 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)

---

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/mecon-limited-c7c41598