# In the matter of NBCC (India) Limited I.A.-2370-2022 in Company Petition No.(IB)-18(ND)-2020

> NCLT judgment dated 2023-03-29. Citation: TCN-2023-NCLT-04007. Satya Narayan Sharma, proprietor of M/s. India Wood Craft, filed an application under Section 9…

- **Court:** NCLT
- **Order date:** 29 Mar 2023
- **Citation:** TCN-2023-NCLT-04007
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/nbcc-india-limited-ia-2370-2022-in-company-petition-noib-18nd-2020-55d38ea9

## Summary

### Background

Satya Narayan Sharma, proprietor of M/s. India Wood Craft, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. NBCC (India) Limited, claiming a default in payment of Rs. 99,37,989/-. This amount includes a principal of Rs. 69,85,645/- and interest of Rs. 29,52,344/- for delayed payments related to interior works executed for Software Technology Parks of India (STPI). The Corporate Debtor, NBCC, argued that there was a pre-existing dispute regarding the quality of work and that payments were contingent upon receiving funds from STPI.

## Facts

M/s. India Wood Craft, the Operational Creditor, undertook interior works for Software Technology Parks of India (STPI) based on a Letter of Acceptance dated 12.08.2016 issued by M/s. NBCC (India) Limited, the Corporate Debtor. The work included HVAC, fire fighting furniture, CCTV systems, and related civil works. The project was scheduled to be completed within four months. India Wood Craft raised seven running account bills, and part payments were made. The Corporate Debtor prepared the 8th and final bill dated 30.06.2017. India Wood Craft claimed an outstanding amount of Rs. 44,79,398/-, while NBCC acknowledged only Rs. 32,78,332/-. India Wood Craft sent reminders for payment and issued a demand notice on 04.11.2019. NBCC contended that payments were contingent upon

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## Issues and analysis

### Issue 1: Whether the CIRP can be initiated against M/s. NBCC (India) Limited ('Corporate Debtor'), a …

**Ratio:** A government company falls under the definition of 'corporate person' as per Section 3(7)

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**Reasoning:** The court relied on the Supreme Court's decision in Hindustan Construction Company

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**Interpretation:** Section 3(7) of the Insolvency and Bankruptcy Code, 2016, defines 'corporate

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**Application:** NBCC (India) Limited, being a company incorporated under the Companies Act,

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## Parties

- **Judges:** SH. P. MOH…; BINOD KUMAR…
- **Appellants:** Satya Narayan…
- **Respondents:** NBCC (India)…

## Timeline

- **2016-08-12 — Letter of Acc…**: NBCC (India) Limited issued a Letter of Acceptance to India Wood Craft for interior works…
- **2017-06-30 — Final Bi…**: NBCC (India) Limited…

## 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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