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

> NCLT judgment dated 2023-07-14. Citation: TCN-2023-NCLT-02524. M/s. Slipform Projects, an operational creditor, filed an application under Section 9 of the…

- **Court:** NCLT
- **Order date:** 14 Jul 2023
- **Citation:** TCN-2023-NCLT-02524
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/techno-electric-engineering-company-ltd-80cb189e

## Summary

### Background

M/s. Slipform Projects, an operational creditor, filed an application under Section 9 of the Insolvency & 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 work involved three sites: New Shilong, Mawngap, and Khahelipara. Disputes arose regarding payments for the work done, leading to the corporate debtor terminating the contract. The operational creditor claimed non-payment of bills, while the corporate debtor

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## Facts

M/s. Slipform Projects (Operational Creditor) entered into a contract with M/s. Techno Electric & Engineering Co. Ltd (Corporate Debtor) for civil works related to Powergrid Corporation of India Ltd projects at three sites: New Shilong, Mawngap, and Khahelipara. The contracted prices were Rs. 6,95,45,128/- for Mawngap and Rs. 6,85,56,820/- for New Shilong. An oral agreement existed for Khahelipara. The Operational Creditor sent R.A. bills for all three sites, but the Corporate Debtor allegedly made no payments. The total bill raised was Rs. 1,37,16,595/-, with Rs.80,96,882/- for Mawngap, Rs.48,07,585/- for New Shilong, and Rs. 8,12,128/- for Khahelipara. The Corporate Debtor made an advance payment of Rs. 19,60,000/- and allegedly paid Rs.75,63,148/- to vendors and

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## Issues and analysis

### Issue 1: Whether the operational debt was disputed by the Corporate Debtor before 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 examined the correspondences between the parties, including emails and letters

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**Interpretation:** The existence of a pre-existing dispute, communicated by the Corporate Debtor

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**Application:** In this case, the Corporate Debtor had communicated the dispute to the

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## Parties

- **Judges:** Praveen…; Ashish…
- **Appellants:** M/s. Slipform…
- **Respondents:** M/s. Techno…
- **Advocates:** Malay…; Shubham A…

## Timeline

- **2017-12-29 — Advance 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 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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