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2025 Supreme(Online)(NCLT) 5078
NATIONAL COMPANY LAW TRIBUNAL
Shri Rammurti Kushawaha, Member (Judicial), Shri Yogendra Kumar Singh, Member (Technical)
M/s Satnam Global Infraprojects Limited – Appellant
Versus
Meghalaya Power Distribution Corporation Limited – Respondent
CP(IB)/9/GB/2024 | IA(IBC)/188/GB/2024 | IA(IBC)/41/GB/2025
For the Appellants/Petitioners: Mr. Suman Kumar, Mr. Shailesh Kumar Singh, Mr. Ajay Pratap Singh, Ms. Abha Singh
For the Respondents: Mr. K. Dutta, Ms. A. Jain
The operational debt claims remain enforceable after completion certificates were issued, affirming that no bona fide pre-existing disputes exist despite corporate debtor's allegations.
Headnote:(A) Insolvency and Bankruptcy Code, 2016 - Section 9 - Corporate Insolvency Resolution Process (CIRP) initiated against corporate debtor on account of operational debt of Rs.96,10,90,889.83/- - Corporate debtor, a state-owned company, resisted claim citing non-payment restrictions and alleged pre-existing disputes; tribunal found no bona fide dispute, thus allowing application. (Paras 8-10, 12, 13)
(B) Section 10A - Application barred for defaults during the lockdown period does not apply as the debt crystallized post the completion certificate date. (Paras 9-10)
(C) Pre-existing disputes - Corporate Debtor’s claim unsupported by contemporaneous evidence was deemed a mere afterthought; claim based on completion certificates issued without objection. (Paras 10-12)
(D) Operational Creditor successfully demonstrated non-payment of operational debt; petition for CIRP admitted.
| Table of Content |
|---|
| 1. cirp application details. (Para 1) |
| 2. operational creditor's facts. (Para 2) |
| 3. petitioner submission of claims. (Para 3) |
| 4. corporate debtor's objections and reasons. (Para 4) |
| 5. appointment and function of authorities. (Para 5) |
| 6. corporate debtor's defenses. (Para 6) |
| 7. court's observations on claims and defenses. (Para 7 , 8 , 9) |
| 8. conclusion of observations. (Para 10) |
| 9. determination of operational debt. (Para 11) |
| 10. admittance to cirp. (Para 12) |
| 11. court orders and directives. (Para 13 , 14 , 15 , 16 , 17 , 18 , 19 , 20 , 21 , 22) |
| 12. final procedural directives. (Para 23 , 24 , 25 , 26) |
JUDGEMENT
1. This Company Petition is filed by M/s Satnam Global Infraprojects Limited (“Operational Creditor”) under Section 9 of the Insolvency and Bankruptcy Code, 2016 (“Code”) read with Rule 6 of Insolvency & Bankruptcy (Application to Adjudicating Authority) Rules, 2016 seeking initiation of the Corporate Insolvency Resolution Process (“CIRP”) against Meghalaya Power Distribution Corporation Limited (“Corporate Debtor”) on account of non-payment of an operational debt amounting to Rs. 96,10,90,889.83/- (Rupees Ninety Six Crore Ten Lakh Ninety Thousand Eight Hundred Eighty Nine and Paisa Eighty-Three Only).
2. Submissions by the Operational Creditor:
2.1. Corporate Debtor is a Public Limited Company incorporated under the Companies Act as a company limited by shares. The Corporate Debtor is one of the three wholly- owned subsidiaries of Meghalaya Energy Corporation Limited (MeECL), and is engaged in the business of electricity distribution throughout the State of Meghalaya.
2.2. The Corporate Debtor caters to more than six lakh consumers and employs approximately 3,500 personnel. It operates an extensive electricity infrastructure network including 107 Nos. of 33/11KV substations and switching stations, around 350 Nos. of feeders, 12,405 Nos. of distribution transformers, 18,000 KMs of 11KV lines, and approximately 1,544.12 KMs of 33KV lines, covering a geographical area of about 2.24 thousand square kilometres within the State of Meghalaya.
2.3. In the month of January 2019, the Operational Creditor was awarded two contracts under the Saubhagya Scheme through two separate work packages for the supply, erection, assembly, manufacturing, type testing, loading, transportation, unloading, insurance, delivery at site, handling, and storage, for execution of works under the Saubhagya Scheme in the State of Meghalaya. Specifically, for construction of 11kV single circuit (SC) lines for 100% household electrification. Pursuant to instructions from the Corporate Debtor, the following contracts were executed:
a) Package A (Eastern Zone) - Two Supply Contract Agreements dated 04.03.2019
b) Package B (Western Zone) - Two Supply Contract Agreements dated 02.09.2019
2.4. Thereafter, on 28.02.2020, an amended Letter of Award (hereinafter, “LoA”) was issued by the Corporate Debtor in favour of the Operational Creditor:
a) Package B: LoA dated 28.02.2020, with a total contract value of Rs. 1,80,99,00,376.16/- (Rupees One Hundred Eighty Crores Ninety-Nine Lakhs Three Hundred Seventy-Six and Sixteen Paisa Only).
b) Package A: LoA dated 06.09.2021, with a total contract value of Rs. 2,60,12,40,198.37/-(Rupees Two Hundred Sixty Crores Twelve Lakhs Forty Thousand One Hundred Ninety-Eight and Thirty-Seven Paisa Only).
2.5. It is an admitted position that the Operational Creditor completed the entire project under both Package A and Package B within the stipulated time as per the General Conditions of the Contract and other governing terms under the Saubhagya Scheme. Post-completion, the Corporate Debtor issued Certificates of Completion in favour of the Operational Creditor acknowledging successful execution of the said projects:
a) Package B: Completion Certificate dated 25.05.2021.
b) Package A: Completion Certificate dated 20.10.2022.
2.6. Despite the successful and timely completion of the projects under both Package A and Package B and issuance of co
