# In the matter of Technofab Manufacturing Limited I.A No. 193 of 2020 in C.P (I.B) No. 710-KB-2017

> NCLT judgment dated 2023-05-01. Citation: TCN-2023-NCLT-03544. Steel Authority of India Limited (SAIL) filed an application under Section 42 of the Insolvency…

- **Court:** NCLT
- **Order date:** 1 May 2023
- **Citation:** TCN-2023-NCLT-03544
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/technofab-manufacturing-limited-ia-no-193-of-2020-in-cp-ib-no-710-kb-2017-4944e9eb

## Summary

### Background

Steel Authority of India Limited (SAIL) filed an application under Section 42 of the Insolvency and Bankruptcy Code, 2016, against the liquidator of Technofab Manufacturing Limited, Mr. Hrisikesh Dasgupta, seeking reliefs related to its claims. SAIL claimed Rs. 51.86 crores as a crystallized claim for cost overruns in executing balance work pursuant to Risk and Cost Tenders. SAIL sought to set aside the liquidator's order rejecting its claim and declare Technofab Manufacturing Limited's claim as an un-crystallized contractual claim. The application arose from a contract where Technofab Manufacturing Limited was part of a consortium for a project at SAIL's IISCO Steel Plant. Delays and disputes occurred, leading to SAIL encashing the Bank Guarantee and initiating risk

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## Facts

Steel Authority of India Limited (SAIL) initiated a global tender on 01 November 2010 for upgrading conveyor and crushing/screening buildings at Bolani Ores Mines. Technofab Manufacturing Limited participated and was selected. A Letter of Acceptance was issued on 05 December 2011, followed by a contract on 18 January 2012, with an effective date of 04 January 2012, to be completed by 03 January 2014. Technofab allegedly breached the agreement by failing to mobilize resources. SAIL extended the completion date five times until 30 June 2017. SAIL encashed the performance Bank Guarantee due to Technofab's delays. SAIL issued a Risk Purchase Notice on 22 February 2017, claiming Rs. 51.86 crores in losses. Technofab filed Misc. Case No. 3324 of 2017 in City Civil Court,

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## Issues and analysis

### Issue 1: Whether the applicant's …

**Ratio:** The legal principle is that a claim must be crystallized before it can be admitted in

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**Reasoning:** The court reasoned that the liquidator contended that the claim of the applicant has not

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**Interpretation:** The interpretation is that a claim must be definite and quantifiable to be

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**Application:** In this case, the court found that the claim was not crystallized because it

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## Parties

- **Judges:** BIDISHA BA…; Balraj…
- **Appellants:** Steel Authority…
- **Respondents:** Technofab…; Hrisikesh D…
- **Advocates:** Anirban…; Prantik…; +9 more

## Timeline

- **2010-11-01 — Global T…**: SAIL initiated an open global tender for upgrading conveyor and crushing/screening…
- **2011-12-05 — Letter of Acc…**: SAIL awarded a Letter of Acceptance to…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 42 — Appeal against the decision of liquidator](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-42)

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