# M/S ANDHRA PRADESH POWER GENERATION CORPORATION LIMITED (APGENCO) vs. M/S TECPRO SYSTEMS LIMITED & ORS.

> SC judgment dated 2025-12-17. Citation: TCN-2025-SC-00102. Two civil appeals challenge an order passed by the High Court for the State of Telangana at…

- **Court:** SC
- **Order date:** 17 Dec 2025
- **Citation:** TCN-2025-SC-00102
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/ms-andhra-pradesh-power-generation-corporation-limited-apgenco-vs-ms-tecpro-syst-g7qbu

## Summary

### Background

Two civil appeals challenge 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, which constituted an Arbitral Tribunal (AT). The dispute originated from an EPC contract awarded by APGENCO to a Consortium, with M/s Tecpro Systems Ltd. (first respondent) initially as the lead member. M/s Tecpro Systems Ltd. later faced severe financial distress, entered Corporate Insolvency Resolution Process (CIRP), and subsequently liquidation. Following this, M/s Tecpro Systems Ltd. invoked arbitration individually against APGENCO. APGENCO and another consortium member (M/s VA Tech Wabag Ltd., also an appellant in a connected appeal) objected to the maintainability of this arbitration, arguing

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## Facts

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

The tender specifications incorporated Instructions to Bidders (IB) and General Conditions of Contract (GCC), including a dispute resolution clause through arbitration under Clause 22.2.

A Consortium comprising M/s Tecpro Systems Ltd. (respondent no. 1), M/s VA Tech Wabag Ltd. (respondent no. 2), and M/s Gammon India Ltd. (respondent no. 3) was constituted on 17.08.2010.

M/s 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 M/s Tecpro Systems Ltd.

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

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## Issues and analysis

### Issue 1: Whether an individual member of a consortium can unilaterally invoke arbitration under Section …

**Ratio:** The referral court's scrutiny under Section 11(6-A) is confined to the prima facie

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**Reasoning:** Section 11(6-A) imposes a statutory restraint, limiting judicial scrutiny to the

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**Interpretation:** The term "examination" in Section 11(6-A) connotes a prima facie

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**Application:** The High Court was justified in constituting the AT based on a prima facie

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## Parties

- **Judges:** PAMIDIGHANTAM SRI…; ATUL S. CHA…
- **Appellants:** M/S ANDHRA…; M/s. VA Tech…
- **Respondents:** M/S TECPRO…; M/s Gammon India…
- **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 Intent (LOI)…**: A Letter of Intent was issued to the Consortium through M/s Tecpro Systems Ltd.,…

## 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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