# In the matter of Techno Electric & Engineering Company Ltd.

> NCLT judgment dated 2023-07-14. Citation: TCN-2023-NCLT-02512. The case involves an application filed by M/s. Slipform Projects, the Operational Creditor,…

- **Court:** NCLT
- **Order date:** 14 Jul 2023
- **Citation:** TCN-2023-NCLT-02512
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/techno-electric-engineering-company-ltd-0947928f

## Summary

### Background

The case involves an application filed by M/s. Slipform Projects, the Operational Creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. Techno Electric & Engineering Co. Ltd, the Corporate Debtor, due to a default in payment of Rs. 1,17,56,595/-. The Operational Creditor and Corporate Debtor entered into a contract for civil works related to projects undertaken by the Corporate Debtor on behalf of Powergrid Corporation of India Ltd. Disputes arose regarding payments for work done at three sites: Mawngap, New Shilong, and Kahelipara. The Corporate Debtor claimed there was a pre-existing dispute, citing the Operational Creditor's failure to pay its sub-vendors and laborers,

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## Facts

M/s. Slipform Projects, the Operational Creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. Techno Electric & Engineering Co. Ltd, the Corporate Debtor, due to a default in payment of Rs. 1,17,56,595/-. The Operational Creditor and Corporate Debtor entered into a contract for civil works related to projects undertaken by the Corporate Debtor on behalf of Powergrid Corporation of India Ltd. The agreement was for construction of Civil Works at three locations: New Shilong, Mawngap, and Kahelipara. Work orders were issued for New Shilong and Mawngap Projects, while an oral agreement existed for the Kahelipara Project. The Operational Creditor raised bills

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## Issues and analysis

### Issue 1: Whether the operational debt was disputed by the Corporate Debtor prior to the application under …

**Ratio:** Section 9(5)(ii)(d) of the Insolvency and Bankruptcy Code, 2016, provides that an

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**Reasoning:** The court found that the Corporate Debtor had raised disputes regarding the amounts

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**Interpretation:** The existence of a pre-existing dispute, meaning a dispute raised before the

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**Application:** In this case, the court found that the Corporate Debtor had raised the dispute

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## Parties

- **Judges:** Sh. Praveen…; Sh. Ashish…
- **Appellants:** M/s. Slipform…
- **Respondents:** M/s. Techno…

## Timeline

- **2017-12-29 — Partial P…**: The Respondent/Corporate Debtor made a payment of Rs. 19,60,000/- as an advance without…
- **2018-02-02 — Email from Corporate…**: An e-mail was sent by the Corporate Debtor to the Operational Creditor for settling all…

## 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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