EPC Constructions India Limited (Appellant), through its liquidator, filed a Section 7 application under the Insolvency and Bankruptcy Code, 2016 (IBC) against M/s Matix Fertilizers And Chemicals Limited (Respondent) for non-payment of INR 310 Crores, representing the redemption amount of Cumulative Redeemable Preference Shares (CRPS). These CRPS originated from the conversion of outstanding receivables from an engineering and construction contract between the parties. Both the National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT) dismissed the application, holding that CRPS are in the nature of an investment, not a debt, and no liability arose as redemption was conditional on profits, which Matix did not have.

EPC Constructions India Limited (Appellant), through its liquidator, filed a Section 7 application under the Insolvency and Bankruptcy Code, 2016 (IBC) against M/s Matix Fertilizers And Chemicals Limited (Respondent) for non-payment of INR 310 Crores, representing the redemption amount of Cumulative Redeemable Preference Shares (CRPS). These CRPS originated from the conversion of outstanding receivables from an engineering and construction contract between the parties. Both the National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT) dismissed the application, holding that CRPS are in the nature of an investment, not a debt, and no liability arose as redemption was conditional on profits, which Matix did not have.