# In the matter of EPC Constructions India Limited Through ItsLiquidator - Abhijit Guhathakurta vs. Matix Fertilizers and Chemicals Limited

> SC judgment dated 2025-10-28. Citation: TCN-2025-SC-00092. The appeal challenges the NCLAT's order which dismissed the appellant's appeal against the NCLT's…

- **Court:** SC
- **Order date:** 28 Oct 2025
- **Citation:** TCN-2025-SC-00092
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/epc-constructions-india-limited-through-itsliquidator-abhijit-guhathakurta-vs-ma-1d0968a1

## Summary

### Background

The appeal challenges the NCLAT's order which dismissed the appellant's appeal against the NCLT's decision to reject the Section 7 application under the IBC. The core issue revolves around whether Cumulative Redeemable Preference Shares (CRPS) constitute a 'financial debt' under the IBC.

## Facts

EPC Constructions India Limited (formerly Essar Projects India Limited) entered into an engineering and construction contract with M/s Matix Fertilizers and Chemicals Limited on 11.12.2009.

Matix requested EPCC to convert outstanding amounts up to Rs. 400 crores into Non-Cumulative Redeemable Preference Shares (NCRPS) on 27.07.2015.

EPCC agreed to convert a portion of the receivables into CRPS via a board resolution dated 30.07.2015.

Matix allotted 25,00,00,000 8% Cumulative Redeemable Preference Shares of Rs 10/- each aggregating to Rs.250,00,00,000 to Essar Projects India Limited on 26th August, 2015.

Corporate Insolvency Resolution Process (CIRP) was initiated against the appellant on 20.04.2018.

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## Issues and analysis

### Issue 1: Whether preference shareholders can be considered …

**Ratio:** Preference shareholders are generally not

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**Reasoning:** Preference shares are part of the company's share capital, and amounts paid up on them

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**Interpretation:** The court interpreted Section 3(37) of the IBC, which incorporates definitions

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**Application:** The court applied this principle to the present case, stating that the

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## Parties

- **Judges:** K.V. VISWA…; J.B. PARD…
- **Appellants:** EPC Constructions…
- **Respondents:** M/s Matix…
- **Other parties:** Modif…; Abhijit Guhathakur…
- **Advocates:** Niranjan…; Mukul Ro…; +1 more

## Timeline

- **2009-12-11 — Contract Ag…**: EPC Constructions India Limited entered into an engineering and construction contract…
- **2015-07-27 — Conversion…**: Matix requested EPCC to convert outstanding amounts up to Rs. 400 crores into…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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