# In the matter of Purvanchal Vidyut Vitran Nigam Ltd.

> NCLT judgment dated 2023-10-12. Citation: TCN-2023-NCLT-01270. The case involves an application filed by SRV Techno Engineering Pvt. Ltd. (Operational…

- **Court:** NCLT
- **Order date:** 12 Oct 2023
- **Citation:** TCN-2023-NCLT-01270
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/purvanchal-vidyut-vitran-nigam-ltd-25e13bfd

## Summary

### Background

The case involves an application filed by SRV Techno Engineering Pvt. Ltd. (Operational Creditor) under Section 9 of the Insolvency & Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Purvanchal Vidyut Vitran Nigam Ltd (Corporate Debtor) due to a default in payment of Rs. 4,43,42,607/-. The Corporate Debtor contested the application, claiming a pre-existing dispute and questioning the validity of the demand notice. The Operational Creditor argued that the Corporate Debtor had consistently evaded payment and that the dispute was raised only to avoid CIRP.

## Facts

SRV Techno Engineering Pvt. Ltd. (SRV) filed an application under Section 9 of the Insolvency & Bankruptcy Code, 2016, against Purvanchal Vidyut Vitran Nigam Ltd (PuVVNL), claiming a default of Rs. 4,43,42,607/-. SRV had been contracted by PuVVNL for projects involving system improvement, strengthening, and augmentation of electricity supply in Kopaganj and Ghosi towns. SRV received Letters of Intent and orders for supply and erection work. Agreements were formalized on March 21, 2016, and May 10, 2016, for the Kopaganj and Ghosi projects, respectively. The Bill of Quantities (BOQ) for both projects was revised, and SRV submitted completion reports. SRV issued invoices totaling Rs. 7,38,13,510/- for Kopaganj and Rs. 6,72,24,553/- for Ghosi. PuVVNL made partial

…

## Issues and analysis

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

**Ratio:** The existence of a pre-existing dispute bars the initiation of CIRP under Section 9 of

…

**Reasoning:** The court found that a dispute existed between the parties regarding the amount of

…

**Interpretation:** The court interprets Section 9 of the IBC to mean that CIRP is not intended to

…

**Application:** The court applied the ratio to the facts of the case, finding that the

…

## Parties

- **Judges:** Praveen…; Ashish…
- **Appellants:** SRV Techno…
- **Respondents:** Purvanchal Vidyut…
- **Advocates:** Rohit A…; Manu K…

## Timeline

- **2016-03-03 — Letter of Inte…**: SRV received a Letter of…
- **2016-03-21 — Supply Order…**: PuVVNL issued an order…

## 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/purvanchal-vidyut-vitran-nigam-ltd-25e13bfd