SL. No.1

NATIONAL COMPANY LAW TRIBUNAL

HYDERABAD BENCH COURT HALL NO: II

Hearing Through: VC and Physical (Hybrid) Mode

CORAM: SHRI. RAJEEV BHARDWAJ, HON’BLE MEMBER (J)

CORAM: SHRI. SANJAY PURI, - HON’BLE MEMBER (T)

ATTENDANCE-CUM-ORDER SHEET OF THE HEARING OF NATIONAL COMPANY LAW TRIBUNAL,

HYDERABAD BENCH, HELD ON 02.08.2024 AT 10:30 AM

TRANSFER PETITION NO.

IA (IBC)/1257/2024 in IA (IBC)/947/2023,

IA (IBC)/947/2023 in MA No.2/2022,

COMPANY PETITION/APPLICATION NO. IA (IBC)/455/2023, IA (IBC)/332/2024 in

CP(IB) No.294/7/HDB/2017

NAME OF THE COMPANY IVRCL Limited

NAME OF THE PETITIONER(S) State Bank of India

NAME OF THE RESPONDENT(S) IVRCL Limited

UNDER SECTION 7 of IBC

ORDER IN THE NATIONAL COMPANY LAW TRIBUNAL Under Section 33(5) of the Insolvency and Bankruptcy Code, 2016.

IA(IBC)/1257/2024 in IA(IBC)/947/2024

Orders pronounced, recorded vide separate sheets. In the result, this Application

is dismissed.

IA(IBC)/947/2024 in MA No.2/2022

Orders pronounced, recorded vide separate sheets. In the result, this Application

is dismissed.

IA(IBC)/455/2023

Orders pronounced, recorded vide separate sheets. In the result, this Application

is disposed of.

IA(IBC)/332/2024

Orders pronounced, recorded vide separate sheets. In the result, this Application

is allowed.

Sd/- Sd/-

MEMBER (T) MEMBER (J)

Vamsi

Mr. Sutanu Sinha, Liquidator of IVRCL Limited, “MIHIR,” 8-2-350/5/A/24/1B, Road No.2, Panchvati Colony, Banjara Hills, Hyderabad – 500 034.

…Applicant IN THE MATTER OF:

State Bank of India …Financial Creditor AND M/s. IVRCL Limited …Corporate Debtor Date of Order: 02.08.2024 CORAM:

Hon’ble Rajeev Bhardwaj, Member (Judicial)

Hon’ble Sanjay Puri, Member (Technical)

Counsels present For the Applicant : Mr. Mr. Nirav Shah along with Mr.

Alay Razvi, Mr. Jash Shah, Advocate Heard on : 09.07.2024.

[PER: BENCH]

ORDER

1. The present application has been filed under section 33(5) of the Insolvency and Bankruptcy Code, 2016 by Mr. Sutanu Sinha the Liquidator of M/s. IVRCL Limited (Applicant/ Corporate Debtor) to grant approval for initiation of arbitration proceedings against ONGC Petro Additions Limited “OPAL”.

NCLT Hyderabad Bench-II Brief facts of the Case

2. It is averred that M/s. IVRCL Limited (CD) was admitted into Corporate Insolvency Resolution Process (CIRP) as per Section 7 of the IBC, 2016 by this Adjudicating Authority vide order dated 23.02.2018 and by the order dated 31.07.2019, the liquidation of the corporate debtor was allowed. Future, the Applicant was appointed as the Liquidator of the CD.

3. ONGC Petro Additions Limited (“OPAL”) on 05.05.2008 engaged the CD and subsequently executed a contract dated 18.06.2008 for Design, Engineering, Procurement, Earth Work, Construction, Commissioning of Utilities, Installation of all Furnishings/ Equipment, and handover of ready use for Infrastructure Development of Petrochemical Complex at Dahej, Gujarat. As per the contract the project was to be completed within 21 months i.e. by 04.02.2010. However, the project was completed on 15.07.2011.

4. On 05.02.2013 OPAL issued a letter, Annexure No. 2, page no. 47. to CD for delay in completing the project and imposed penalty of Liquidated Damages of Rs. 43.34 Crores, being 10% of the value of the work which remained incomplete on the scheduled date of completion. This amount was withheld by OPAL from the payments to be made to the CD.

5. The CD aggrieved by the decision invoked dispute resolution mechanism, wherein OPAL’s in-house mechanism established an Outside Expert Committee (OEC) on 28.07.2014. The OEC’s report, Annexure No. 4, page no. 50 to 80. dated 25.01.2016 determined that the delay of 424 days cannot be attributable to the CD and recalculated the liquidated damages to Rs. 6.86 Crores only. However, it was decided and recommended by the OEC report dated 05.01.2016, that no Liquidated damages to be levied for 100% works NCLT Hyderabad Bench-II completed as on 04.04.2011. Further, the report recommended OPAL to release withheld balance of Rs. 36.48 Crores in the final bill with inte