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2026 Supreme(Online)(NCLT) 3058
NATIONAL COMPANY LAW TRIBUNAL
Rajeev Bhardwaj, Judicial Member, Sanjay Puri, Technical Member
Ss Rail Works Pvt. Ltd. – Appellant
Versus
Vnr Infrastructure Limited – Respondent
I.A. No.40 of 2022 in C.P.(IB).No.12/10/HDB/2017
For the Appellants/Petitioners: M. Anil Kumar
For the Respondents: JVL Bharati, TSN Raja
An Adjudicating Authority, under Section 60(5) of the IBC, cannot issue a mandatory direction to a Liquidator to adjudicate or process disputed contractual claims or bills from a subcontractor, as such matters fall beyond the summary scope of liquidation proceedings and must be pursued before competent civil or contractual forums.
Headnote:(A) Insolvency and Bankruptcy Code, 2016 - Section 60(5) - Subcontractor seeking direction to Liquidator to accept measurements, process bills, and release payment received from Railway Authorities - Corporate Debtor sold as going concern - Whether relief can be granted to compel Liquidator to process disputed contractual claims. (Paras 1, 49-50)
(B) Liquidator's Role - Residual liquidation functions - Even after sale as going concern, Liquidator remains accountable for account reconciliation and statutory reporting - However, Liquidator cannot be compelled to adjudicate or act upon substantive, disputed contractual claims (Paras 55-58, 60-61)
Facts of the case:
The Applicant, a subcontractor, sought a direction against the Liquidator of the Corporate Debtor to accept its measurements/bills and process a payment of Rs. 34,31,076/- from Railway Authorities. The Liquidator opposed the application, citing disputes over bill validity, lack of reconciliation, material losses, and ongoing termination litigation against the Applicant.
Findings of Court:
The Tribunal held that it cannot adjudicate disputed contractual questions (measurements, bill validity, set-off/losses) in the present application. The Liquidator cannot be compelled to certify bills or pursue claims against third parties. The Applicant must pursue remedies against the Corporate Debtor under new management or before competent forums.
Issues: Whether the Liquidator can be directed to accept and process the Applicant's final bills for payment release in a liquidation proceeding.
Ratio Decidendi: An Adjudicating Authority cannot issue a mandatory direction to a Liquidator to adjudicate and process substantive, disputed contractual claims between a subcontractor and the Corporate Debtor during the residual liquidation stage, particularly when alternative forums exist.
Result: Application dismissed.
| Table of Content |
|---|
| 1. nature of relief sought by the applicant under section 60(5). (Para 1 , 13) |
| 2. respondent's contentions regarding disputed liability and ongoing litigation. (Para 14 , 38) |
| 3. applicant's rejoinder emphasizing the narrow scope of the claim. (Para 39 , 47) |
| 4. liquidator's residual role in a going concern sale. (Para 48 , 56) |
| 5. non-adjudicability of disputed contractual claims in summary liquidation proceedings. (Para 57 , 64) |
IN THE NATIONAL COMPANY LAW TRIBUNAL
HYDERABAD BENCH – II
VC AND PHYSICAL (HYBRID) MODE
ATTENDANCE CUM ORDER SHEET OF THE HEARING HELD ON
20.05.2026 AT 10:30 A.M.
IA(IBC)/38/2022, IA (IBC)/39/2022, IA (IBC)/40/2022,
IA(IBC)/41/2022, IA (IBC)/42/2022, IA (IBC)/43/2022,
IA(IBC)/44/2022 & IA (IBC)/45/2022
in CP (IB) No. 12/10/HDB/2017
U/s 10 of IBC
IN THE MATTER OF:
VNR Infrastructure Limited …Petitioner
C O R A M:-
SHRI. RAJEEV BHARDWAJ, HON’BLE MEMBER (JUDICIAL)
SHRI. SANJAY PURI, HON’BLE MEMBER (TECHNICAL)
O R D E R
IA(IBC)/38/2022
Orders pronounced, recorded vide separate sheets. In the result, the
IA(IBC)/38/2022 is dismissed.
IA (IBC)/39/2022
Orders pronounced, recorded vide separate sheets. In the result, the
IA(IBC)/39/2022 is dismissed.
IA (IBC)/40/2022
Orders pronounced, recorded vide separate sheets. In the result, the
IA(IBC)/40/2022 is dismissed.
IA(IBC)/41/2022
Orders pronounced, recorded vide separate sheets. In the result, the
IA(IBC)/41/2022 is dismissed.
IA (IBC)/42/2022
Orders pronounced, recorded vide separate sheets. In the result, the
IA(IBC)/42/2022 is dismissed.
IA (IBC)/43/2022
Orders pronounced, recorded vide separate sheets. In the result, the
IA(IBC)/43/2022 is dismissed.
IA(IBC)/44/2022
Orders pronounced, recorded vide separate sheets. In the result, the
IA(IBC)/38/2022 is dismissed.
IA (IBC)/45/2022
Orders pronounced, recorded vide separate sheets. In the result, the
IA(IBC)/38/2022 is dismissed.
(Under section 60(5) of the Indolvency and Bankruptcy Code, 2016)
Between:
M/s.SS Rail Works Pvt. Ltd..
Regd. Office: H.No.8-3-318/6/13/5,
Flat No.203, Crystal Residence,
Jayaprakash Nagar, Yellareddyguda,
Hyderabad-500 073,
Represented by its Chief Executive Officer,
Mr.A.Srinivasulu Reddy.
...Applicant
And
M/s.VNR Infrastructure Limited,
(under liquidation),
Rep. by its Liquidator Mr.T.S.N.Raja,
2nd Floor, H.No.3-11-494, Plot No.13 & 20,
Rajiv Gandhi Nagar, Inner Ring Road,
L.B. Nagar, Hyderabad-500 074
...Respondent
1. The present Interlocutory Application has been filed by the SS Rail Works Pvt. Ltd (“Applicant”) under section 60(5) of the Insolvency and Bankruptcy Code, 2016 (“Code”) against M/s. VNR Infrastructures Ltd (“Corporate Debtor”), represented by its Liquidator (“Respondent”), seeking a direction against the Respondent to accept the measurements and final bills submitted by the Applicant in respect of the subcontract works executed under the principal contract awarded by the North East Frontier Railway Authorities and thereafter submit the same before the N.F. Railway Authorities for the release of payment of Rs. 34,31,076/-, and upon receipt thereof, to release the said amount in favour of the Applicant.
Applicantion
2. The Applicant submits that the Corporate Debtor has obtained contracts from North East Frontier Railway (“N.F.Railways”), Maligaon, Guwahati, for the construction of the substructure of major bridges in Tripura state. The Corporate Debtor had entered into a Sub-Contract Agreement1ANNEXURE A-1 dated 19.12.2016 with the Applicant on “AS IS WHERE IS” basis for execution of works valued at Rs.8,85,32,775/-. The Applicant asserts that, considering the financial distress of the Corporate Debtor, the Applicant agreed to execute the said works for a consideration of Rs. 8,67,62,119/-.
3. The Respondent has released Rs 3,43,78,660/- on 15.01.2018. It is further submitted that the final bill2ANNEXURE A-2 for an amount of Rs. 34,31,076/- was measured, finalised, and recorded by the Railway Department. The Applicant submits that the PVC (Price Variation
