ORDER

1. The present Application has been filed on 22.02.2025 by Velocity Enterprises (hereinafter referred to as the “Applicant”), under Section 60(5) of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as the “Code”/“IBC, 2016”) seeking appropriate directions to set aside order dated 04.12.2024 challenging the illegal termination of the Work Order dated 18.11.2022 by the Respondent No.1, Jaiprakash Associates Limited through its Interim Resolution Professional, Bhuvan Madan (hereinafter referred to as “IRP/RP”).

2. The Applicant has made the following prayers in the application:

IA No.108/2025

a. Allow the present application

b. To set aside the order dated 04.12.2024 whereby the contract has been terminated in an illegal and arbitrary manner

c. Till the final disposal of the present application the Respondent No. 1 may be restrained from taking any coercive action against the Applicant on the basis of the work order issued on 18.11.2022 bearing Reference No. JAL/HO/MP/E&M/VELOCITY/RAMNAGAR/2022.

d. Pass such other and further orders as may be deemed fit and proper in the facts and circumstances of the instant case.

3. As submitted, the Applicant is a proprietorship firm based at Bhopal, Madhya Pradesh, and Respondent No.1 is a company engaged in engineering and infrastructure which had been awarded the Micro Lift Irrigation Project at Ramnagar by Respondent Nos. 2 and 3, the project timeline having been extended from time to time with the final completion date stated as 31.12.2024.

4. The Applicant submits that Respondent No.1 issued a Work Order dated 18.11.2022 in its favour for execution of design, engineering, supply, erection and commissioning of electrical, mechanical and substation works of the pump house along with five years’ operation and maintenance, for a total consideration of Rs.17,35,00,000/-, subject to approval of drawings and stage-wise payments, which was confirmed by email dated 19.11.2022.

5. It is stated that the Applicant furnished an Advance Bank Guarantee of Rs.1.48 Crores dated 02.03.2023, later renewed till 31.03.2025, and commenced execution of work, the scope including supply, design, transportation, erection and commissioning of the substation and allied works with mobilization advance payable against the bank guarantee and further payments linked to certified material supply at site.

6. The Applicant submits that initial drawings proposed two 16 MVA transformers, but upon review by the concerned authority (Respondent No.4), revised drawings providing 7.5 MVA transformers were submitted and ultimately approved by competent authorities through communications dated 09.02.2023 and 29.06.2023, following which the Applicant incurred expenditure of approximately Rs.2.60 Crores towards procurement.

7. It is further submitted that RA Bill No.1 dated 30.09.2023 for Rs.25,92,000/- was cleared on 22.10.2023, which according to the Applicant indicated acceptance of the approved design, and although mobilization advance was delayed till August 2023, Respondent No.1 sought consent for facilitating direct payment through letter dated 28.08.2023, and thereafter a No Objection confirmation was obtained from the Executive Engineer (E&M), Rewa, stating that drawings were in order, after which the RA Bill was cleared without dispute.

8. The Applicant states that installation activities progressed after October 2023 and an extension of time was granted from 01.01.2024 to 31.05.2024, the transformers having been offered for inspection in January 2024 and jointly inspected in February 2024 by Respondent Nos.2 to 4, who reportedly found the 7.5 MVA transformers satisfactory and best in class as per certificate dated 05.02.2024.

9. According to the Applicant, disputes thereafter arose regarding revision of price schedule and scope, and although multiple RA Bills (RA-2 to RA-11) were submitted, only partial payment of about Rs.80,00,000/- was released against the sup