# In the matter of kay Bouvet Engineering Ltd. Vs. Overseas Infrastructure Alliances (India) Private Limited CIVIL APPEAL NO. 1137 OF 2019

> SC judgment dated 2021-08-10. Citation: TCN-2021-SC-00026. This case involves an appeal against the judgment and order passed by the National Company Law…

- **Court:** SC
- **Order date:** 10 Aug 2021
- **Citation:** TCN-2021-SC-00026
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/kay-bouvet-engineering-ltd-vs-overseas-infrastructure-alliances-1cbb83c2

## Summary

### Background

This case involves an appeal against the judgment and order passed by the National Company Law Appellate Tribunal (NCLAT), which had allowed an appeal filed by Overseas Infrastructure Alliance (India) Private Limited (Overseas) against Kay Bouvet Engineering Ltd. (Kay Bouvet). The dispute arose from a project in Sudan financed by a line of credit from the Government of India through Exim Bank. Mashkour Sugar Company Limited (Mashkour) contracted with Overseas, who then subcontracted with Kay Bouvet. Overseas initiated corporate insolvency resolution process (CIRP) against Kay Bouvet under Section 9 of the Insolvency and Bankruptcy Code (IBC), claiming to be an operational creditor. The NCLT dismissed the petition, but NCLAT allowed the appeal, leading Kay Bouvet to

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## Facts

The Government of India extended a Dollar Line of Credit of USD 150 Million to the Republic of Sudan through Exim Bank of India for the Mashkour Sugar Project in Sudan. Mashkour Sugar Company Limited entered into an agreement with Overseas Infrastructure Alliance (India) Private Limited for USD 149,975,000, financed by Exim Bank. Mashkour was to nominate a sub-contractor. Kay Bouvet Engineering Limited submitted its bid as a sub-contractor, which was accepted by Mashkour. A Memorandum of Understanding was entered into between Mashkour, Overseas, and Kay Bouvet. Overseas was to release payment of USD 10.62 Million to Kay Bouvet on submission of Advance Bank Guarantee and Performance Bank Guarantee by Kay Bouvet to Mashkour. Overseas paid Rs.47,12,10,000/- to Kay Bouvet.

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## Issues and analysis

### Issue 1: Whether Overseas Infrastructure Alliance (India) Private Limited could initiate corporate …

**Ratio:** The ratio is based on the interpretation of Sections 8 and 9 of the IBC, which require

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**Reasoning:** The court reasoned that Kay Bouvet had clearly stated that the amount of

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**Interpretation:** The interpretation of Section 9 of the IBC, particularly in light of the

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**Application:** The court applied the ratio to the facts of the case, finding that the

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## Parties

- **Judges:** B.R. G…; ROHINTON FALI…
- **Respondents:** Kay Bouvet…; OVERSEAS INFRASTRU…
- **Other parties:** Over Tu…

## Timeline

- **2009-01-26 — First Tranche…**: First tranche of USD 25 Million was executed…
- **2009-10-11 — Agreement Between…**: Mashkour Sugar Company Limited entered into an agreement with Overseas Infrastructure…

## 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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