# In the matter of Offshore Infrastructures Limited

> NCLT judgment dated 2024-02-21. Citation: TCN-2024-NCLT-02498. The case involves a petition filed by IL & FS Engineering and Construction Company Limited…

- **Court:** NCLT
- **Order date:** 21 Feb 2024
- **Citation:** TCN-2024-NCLT-02498
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/offshore-infrastructures-limited-13786c17

## Summary

### Background

The case involves a petition filed by IL & FS Engineering and Construction Company Limited (Operational Creditor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Offshore Infrastructures Limited (Corporate Debtor) for non-payment of dues related to hiring of construction equipment. The Operational Creditor and Corporate Debtor entered into an agreement on 26.03.2019 for hiring equipment. The Operational Creditor provided machinery and raised invoices from April 2019 to August 2020. The Corporate Debtor made part-payments but was irregular in payments from June 2019 onwards. The Operational Creditor issued a demand notice on 09.05.2022 after repeated follow-ups. The Corporate Debtor

…

## Facts

IL & FS Engineering and Construction Company Limited (Operational Creditor) filed a petition against Offshore Infrastructures Limited (Corporate Debtor) to initiate CIRP under Section 9 of the IBC. The basis of the petition was unpaid dues related to a work order dated 26.03.2019, where the Operational Creditor provided construction equipment to the Corporate Debtor on a hire basis. Invoices were raised from April 2019 to August 2020. The Corporate Debtor made part-payments but defaulted from June 2019. The Operational Creditor issued a demand notice on 09.05.2022. The Corporate Debtor refuted liability on 26.05.2022 and filed I.A. 5694/2023 challenging the petition's maintainability, citing Section 10A of the IBC (which prohibits CIRP initiation for defaults

…

## Issues and analysis

### Issue 1: Whether the application for initiation of Corporate Insolvency Resolution Process (CIRP) is …

**Ratio:** The maintainability of a CIRP application under Section 9 of the IBC depends on whether

…

**Reasoning:** The court reasoned that while the initial default occurred before the Section 10A period,

…

**Interpretation:** Section 9 of the IBC allows an operational creditor to initiate CIRP if a debt

…

**Application:** In this case, the court found that the default amount was less than the

…

## Parties

- **Judges:** LAKSHMI G…; Charanjeet Singh…
- **Appellants:** IL & FS Engineerin…
- **Respondents:** Offshore Infrastru…

## Timeline

- **2019-03-26 — Agreement…**: Operational Creditor and Corporate Debtor entered into an agreement for hiring of…
- **2019-04-01 — Invoice Perio…**: Operational Creditor…

## 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/offshore-infrastructures-limited-13786c17