# In the matter of Sri SCL Infratech Limited

> NCLT judgment dated 2024-11-08. Citation: TCN-2024-NCLT-00287. The case involves an application (I.A.No.1258/9/HDB/2024) in a Corporate Insolvency Resolution…

- **Court:** NCLT
- **Order date:** 8 Nov 2024
- **Citation:** TCN-2024-NCLT-00287
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sri-scl-infratech-limited-2369cc74

## Summary

### Background

The case involves an application (I.A.No.1258/9/HDB/2024) in a Corporate Insolvency Resolution Process (CIRP) under C.P.(IB) No.56/9/HDB/2021. The CIRP was initiated by M/s.V.R.Constructions, an Operational Creditor, against M/s.Sri SCL Infratech Ltd, the Corporate Debtor. The admission of the CIRP was based on a judgment that was later challenged. The applicant, who replaced M/s.Sri SCL Infratech Ltd., challenged the initial judgement by filing a Commercial Court Appeal before the High Court of Andhra Pradesh. The High Court set aside the trial court's judgement. Subsequently, a Company Appeal was filed before the NCLAT, which was later disposed of as infructuous after the High Court dismissed the Commercial Court Appeal.

## Facts

M/s.V.R.Constructions, an Operational Creditor, initiated a Corporate Insolvency Resolution Process (CIRP) against M/s.Sri SCL Infratech Ltd, the Corporate Debtor, under Section 9 of the IBC, 2016. The CIRP was admitted based on a judgment (Annexure A1 dated 08.12.2017) in original suit No.83 of 2017. This judgement was later set aside by the Hon'ble High Court of Andhra Pradesh (Annexure A2 dated 05.05.2023). The applicant, who replaced M/s.Sri SCL Infratech Ltd., challenged the judgement dated 08.12.2017 by filing Commercial Court Appeal No.7 of 2018 before the Hon'ble High Court of Andhra Pradesh. A Company Appeal No.399 of 2022 was filed before the NCLAT against the order admitting the CP No.399 of 2022 under Section 9 of IBC. The NCLAT disposed of the Company

…

## Issues and analysis

### Issue 1: Whether the CIRP should continue given that the foundation for its initiation (the original …

**Ratio:** The legal principle is that a CIRP cannot stand if the underlying judgment upon which it

…

**Reasoning:** The court reasoned that the original judgment, Annexure A1 dated 08.12.2017, which formed

…

**Interpretation:** This issue involves interpreting the impact of a High Court decision on an

…

**Application:** Since the High Court has set aside the original judgment, the court applied the

…

## Parties

- **Judges:** Rajeev Bh…; Sanjay…
- **Appellants:** Mr.Damavarapu…
- **Respondents:** M/s.Sri SCL…; M/s.V.R.Constructi…

## Timeline

- **2021-01-01 — C.P.(IB)…**: C.P.(IB) No.56/9/HDB/202…
- **2022-10-18 — CIRP Admi…**: Corporate Debtor was admitted by this Authority…

## 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/sri-scl-infratech-limited-2369cc74