Insolvency Petition No. 26 (ND) of 2017. Case: Prideco Commercial Projects Pvt. Ltd. Vs Era Infra Engineering Ltd.. Company Law Board

Case Number:Insolvency Petition No. 26 (ND) of 2017
Party Name:Prideco Commercial Projects Pvt. Ltd. Vs Era Infra Engineering Ltd.
Counsel:For Appellant: Santosh Kumar, Rajiv Ranjan Mishra and Anant A. Pavgi, Advocates
Judges:M.M. Kumar, C.J. (President) and R. Varadharajan, Member (J)
Issue:Insolvency And Bankruptcy Code, 2016 - Sections 14, 15, 17, 18, 19, 31, 33, 5(20), 5(21), 9, 9(3); Limitation Act, 1963 - Section 19
Judgement Date:April 12, 2017
Court:Company Law Board
 
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Order:

(Principal Bench, New Delhi)

1. The petitioner, M/s. Prideco Commercial Projects Private Limited have approached this Tribunal under Section 9 of the Insolvency and Bankruptcy Code, 2016 (for brevity the 'Code'). The prayer made by the petitioner is to trigger insolvency resolution process against the respondent claiming that the petitioner is an 'Operational Creditor' within the meaning of Section 5(20) and the respondent owes operational debt to the petitioner within the meaning of Section 5(21) of the Code. It has also been claimed that the respondent is a defaulter in making the payment of operational debt and the claim is within the period of limitation.

2. Brief facts necessary for disposal of the instant petition may first be noticed. The 'Corporate Debtor' awarded a contract to the 'Operational Creditor'-petitioner by placing seven work orders to it. The detail of the work orders is as follows:-

1. EILE-EPC/2009-10/193, Dt. 17.03.2009 value Rs. 4,06,50,525/-

2. EILE-EPC/2009-10/215A, Dt. 01.04.2009 value Rs. 1,20,000/-

3. EILE-EPC/2009-10/232A, Dt. 20.04.2009 value Rs. 7,84,000/-

4. EILE-EPC/2009-10/304, Dt. 01.06.2009 value Rs. 3,66,240/-

5. EILE-EPC/2009-10/362, Dt. 03.06.2009 value Rs. 1,19,562/-

6. EILE-EPC/2009-10/436, Dt. 01.09.2009 value Rs. 1,45,750/-

7. EILE-EPC/2010-11, Dt. 26.10.2010 value Rs. 61,60,000/- for construction, transportation of WMM/GSB work from Km. 29+650 to Km. 93 +140 of NH-10 from Delhi-Haryana border to Rohtak Section. The total contract value was Rs. 4,83,47,077/- (Rupees Four Crore Eighty Three Lakhs Forty Seven Thousand Seventy Seven Only).

3. It is the case of the 'Operational Creditor'-petitioner that it has successfully completed the awarded project to the complete satisfaction of the 'Corporate Debtor'. The 'Corporate Debtor' in order to discharge its liability issued seven post-dated cheques for a sum of Rs. 5,23,016/- each as a full and final settlement. Except one all other cheques were dishonoured on presentation. The details of the same has been provided by the 'Operational Creditor' which is explicit from the following table:-

4. The 'Operational Creditor'-petitioner has claimed that it had sent several e-mails to the Corporate Debtor on 03.03.2015, 28.05.2015, 30.10.2015, 26.03.2016, 09.05.2016 & 03.06.2016. None of the e-mails could evoke any positive response towards the payment of the outstanding amount. It shows that the Corporate Debtor has committed default. Thereafter the...

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