# In the matter of Andhra Pradesh Power Generation Corporation Limited (APGENCO) vs. Tecpro Systems Limited & Ors.

> SC judgment dated 2025-12-17. Citation: TCN-2025-SC-00100. The case involves two civil appeals arising from an order passed by the High Court for the State of…

- **Court:** SC
- **Order date:** 17 Dec 2025
- **Citation:** TCN-2025-SC-00100
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/andhra-pradesh-power-generation-corporation-limited-apgenco-vs-tecpro-systems-li-ca57dfcd

## Summary

### Background

The case involves two civil appeals arising from an order passed by the High Court for the State of Telangana at Hyderabad under Section 11(6) of the Arbitration and Conciliation Act, 1996, constituting an Arbitral Tribunal (AT) for dispute resolution as per the arbitration clause 22.2 in the General Conditions of Contract (GCC).

## Facts

APGENCO floated a tender inviting bids from a Consortium of companies for an EPC contract for their Rayalseema Thermal Power Plant.

A Consortium comprising M/s Tecpro Systems Ltd., M/s VA Tech Wabag Ltd., and M/s Gammon India Ltd. was constituted on 17.08.2010.

Tecpro Systems Ltd. was designated as the Leader of the Consortium.

A Letter of Intent (LOI) dated 30.10.2010 was issued to the Consortium through Tecpro Systems Ltd.

Three Purchase Orders, dated 15.12.2010, were issued in favor of the Consortium.

Tecpro Systems Ltd. encountered severe financial distress, leading to project delays.

VA Tech Wabag undertook Tecpro Systems Ltd.'s scope of work and was recognized as the Lead Member.

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## Issues and analysis

### Issue 1: Whether the High Court was justified in constituting the AT on the basis of a prima facie test of …

**Ratio:** The Supreme Court held that the High Court was justified in constituting the AT on the

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**Reasoning:** The Court emphasized that the legislative policy under the Act 1996 strongly favors

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**Interpretation:** The Court interpreted Section 11(6-A) of the Act to mean that the referral

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**Application:** The Court applied this interpretation to the present case, holding that the

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## Parties

- **Judges:** PAMIDIGHANTAM SRI…; ATUL S. CHA…
- **Appellants:** M/S ANDHRA…
- **Respondents:** M/S TECPRO…; M/s. VA Tech…; +1 more
- **Other parties:** Affir…
- **Advocates:** N. Venkat…; Guru Krishn…; +1 more

## Timeline

- **2010-08-17 — Consortium Fo…**: A Consortium comprising M/s Tecpro Systems Ltd., M/s VA Tech Wabag Ltd., and M/s Gammon…
- **2010-10-30 — Letter of…**: A Letter of Intent (LOI) was issued to the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 11(6) — Persons not entitled to make application](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-11)

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