# In the matter of Bhubaneshwar Power Private Limited

> NCLT judgment dated 2023-07-10. Citation: TCN-2023-NCLT-05341. M/s East Coast Constructions and Industries Ltd filed a company petition under Section 9 of the…

- **Court:** NCLT
- **Order date:** 10 Jul 2023
- **Citation:** TCN-2023-NCLT-05341
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-hyderabad/bhubaneshwar-power-private-limited-d373e16e

## Summary

### Background

M/s East Coast Constructions and Industries Ltd filed a company petition under Section 9 of the Insolvency & Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against M/s Bhubaneshwar Power Pvt Ltd, claiming a sum of Rs. 1,43,14,192/- was due. The Corporate Debtor denied the claim, citing a pre-existing dispute and limitation.

## Facts

A contract was entered into between East Coast Constructions and Industries Ltd (Operational Creditor) and Bhubaneshwar Power Pvt Ltd (Corporate Debtor) on 14.02.2013 for civil works.

A dispute arose between the parties and was referred to a Sole Arbitrator, who passed an award on 09.12.2016 based on a settlement agreement.

The Corporate Debtor paid Rs. 5,90,00,000/- out of the total agreed amount of Rs. 6,80,00,000/-, retaining Rs. 90,00,000/- for statutory discharges.

The Operational Creditor submitted proof of statutory payments and demanded the release of the balance amount of Rs. 90,00,000/-, which was denied by the Corporate Debtor on 01.07.2022.

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## Issues and analysis

### Issue 1: Whether the operational debt as claimed by …

**Ratio:** Article 137 of the Limitation Act applies to applications under Section 9 of the IBC, and

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**Reasoning:** The NCLT considered the arbitral award date (09.12.2016) and the part payment made by

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**Interpretation:** The limitation period is calculated from the date of the arbitral award, and

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**Application:** The NCLT found that the petition, filed on 16.09.2022, was barred by

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## Parties

- **Judges:** Venkata Ramakrishn…; SH. CHARAN…
- **Appellants:** M/s East Coast…
- **Respondents:** M/s Bhubaneshwar…
- **Other parties:** Elias A L…
- **Advocates:** Satya…; L. Ravich…; +2 more

## Timeline

- **14.02.2013 — Contract…**: Contract was entered into between East Coast Constructions and Industries Ltd and…
- **09.12.2016 — Arbitral Awa…**: Sole Arbitrator passed an award…

## 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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