# In the matter of VA Tech Wabag Limited

> NCLT judgment dated 2023-07-05. Citation: TCN-2023-NCLT-02657. ABB India Limited, the Operational Creditor, filed an application under Section 9 of the…

- **Court:** NCLT
- **Order date:** 5 Jul 2023
- **Citation:** TCN-2023-NCLT-02657
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/va-tech-wabag-limited-af510779

## Summary

### Background

ABB India Limited, the Operational Creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against VA Tech WABAG Limited, the Corporate Debtor, to initiate the Corporate Insolvency Resolution Process (CIRP). The claim pertains to unpaid operational debt arising from purchase and work orders for a project. The Corporate Debtor disputed the claim, citing delays, non-completion of work, and non-issuance of completion certificates.

## Facts

ABB India Limited (Operational Creditor) filed an application under Section 9 of the IBC, 2016 against VA Tech WABAG Limited (Corporate Debtor) for unpaid operational debt. The debt arose from purchase order No.MBG-P0-171714/10P84 and work order No.MBG-P0-17298/10P84 both dated 09.03.2015, including amendments, for a project viz. APGENCO – RTTP – TSL. The Operational Creditor claimed Rs.10,85,15,671/- as the default amount. The Corporate Debtor granted extensions of time for completion, with the final extension up to 31.03.2020. A reconciliation statement dated 31.01.2019 showed Rs.6,66,40,067/- as the retention amount. The Operational Creditor issued a demand notice under Section 8 of IBC, 2016 on 17.09.2021, served on 18.09.2021. The Corporate Debtor replied on

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## Issues and analysis

### Issue 1: Whether the claim of the Operational Creditor would qualify to be an 'operational debt' and if so, …

**Ratio:** The amount claimed must be an 'operational debt' as defined under the IBC, and it must be

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**Reasoning:** The NCLT found that the Operational Creditor had not fully completed the works as per the

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**Interpretation:** The interpretation of 'operational debt' and 'due and payable' under the IBC

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**Application:** In this case, the Operational Creditor failed to demonstrate that the work was

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## Parties

- **Judges:** SANJIV…; SAMEER…
- **Appellants:** ABB India L…
- **Respondents:** V A Tech Wabag…

## Timeline

- **2015-03-09 — Purchase and Wo…**: Corporate Debtor placed Purchase Order No.MBG-P0-171714/10P84 and Work Order…
- **2016-10-26 — Extension o…**: Corporate Debtor granted…

## 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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