Powergrid Corporation Of India Ltd vs Deepak Cables (India) Ltd

Power Grid Corporation of India ...Appellant

Vs.

Deepak Cables (India) Limited ...Respondent

Present: For Appellant: - Ms. Gunjan Arora, Advocate.

For Respondent: - Mr. P.V. Dinesh, Mr. R.S. Lakshman and Mr. Ashwini Kumar Singh, Advocates.

Company Appeal (AT) (Insolvency) No. 297 of 2019

IN THE MATTER OF:

Power Grid Corporation of India ...Appellant

Vs.

Deepak Cables (India) Limited ...Respondent

Present: For Appellant: - Mr. Joshua Samuel and Mr. Rajat Agnihotri, Advocates.

For Respondent: - Mr. P.V. Dinesh, Mr. R.S. Lakshman and Mr. Ashwini Kumar Singh, Advocates.

Company Appeal (AT) (Insolvency) No. 310 of 2019

IN THE MATTER OF:

Power Grid Corporation of India ...Appellant

Vs. Contd/-.....

-2-

Deepak Cables (India) Limited ...Respondent

Present: For Appellant: - Mr. Joshua Samuel and Mr. Rajat Agnihotri, Advocates.

For Respondent: - Mr. P.V. Dinesh, Mr. R.S. Lakshman and Mr. Ashwini Kumar Singh, Advocates.

Company Appeal (AT) (Insolvency) No. 348 of 2019

IN THE MATTER OF:

Powergrid Corporation of India Ltd. ...Appellant

Vs.

Deepak Cables (India) Limited ...Respondent

Present: For Appellant: - Mr. Joshua Samuel and Mr. Rajat Agnihotri, Advocates.

For Respondent: - Mr. P.V. Dinesh, Mr. R.S. Lakshman and Mr. Ashwini Kumar Singh, Advocates.

O R D E R

18.07.2019─ In the 'Corporate Insolvency Resolution Process'

against 'M/s. Deepak Cables (India) Ltd.'- ('Corporate Debtor'), the

Appellant filed separate claims region wise. The Appellant's claim is that

the 'Corporate Debtor' was to supply certain goods and required to

provide certain services but total goods have not been supplied, nor total

services completed and, therefore, they raised certain claims as -3-

'Operational Creditor'. The 'Resolution Professional' rejected the claim on

the ground that the Appellant is not 'Operational Creditor' and with

regard to their claim arbitration is pending wherein claim petition filed

by 'Deepak Cables (India) Limited' and counter claim raised by the

Appellant- 'Power Grid Corporation of India'.

2. The Appellant filed separate application under Section 60(5) of the

Insolvency and Bankruptcy Code, 2016 ('I&B Code' for short) before the

Adjudicating Authority (National Company Law Tribunal), Bengaluru

Bench, Bengaluru, which having rejected by common order dated 30th

January, 2019, these appeals have been preferred by common Appellant-

'Power Grid Corporation of India'.

3. The Appellant has taken similar plea before this Appellate Tribunal

as was taken before the 'Resolution Professional' and the Adjudicating

Authority. Mr. R.S. Lakshman appearing on behalf of the 'Resolution

Professional' submits that subsequently the Adjudicating Authority has

passed order of liquidation on 4th July, 2019.

4. In view of the aforesaid development, we are not inclined to decide

the claim of the Appellant at this stage as the Appellant will get right to

file fresh claim application before the liquidator who is required to decide

the same in terms of Sections 38 & 39 of the 'I&B Code'. In such case, if

the claim of the Appellant is rejected by the liquidator under Section 40, -4-

it will be open to the Appellant to prefer an appeal against the decision of

the liquidator under Section 42 of the 'I&B Code'.

5. So far as pendency of the arbitration proceeding is concerned, after

liquidation it is open to the Arbitral Tribunal to proceed in the arbitration.

However, we are not inclined to express any opinion with regard to the

same. We are of the view that if the claim is filed by the 'Corporate

Debtor'- 'Deepak Cables (India) Limited', there is no bar to proceed in the

arbitration and if it proceeds, its counter claim is to be decided. If the

counter claim is awarded in favour of the Appellant and if certain amount

is payable to it, it can take advantage of the same.

6. It is informed that about six arbitration proceedings are pending.

In some of them, 'M/s. Power Grid Corporation of India Limited' has filed

claim. In some of the other arbitration proceedings where claim petition

is filed by 'Deepak Cables (India) Limited', particularly regional office or

the Appellant-'M/s. Power Grid Corporation of India Limited' has filed

counter claim.

7. It is also informed that the arbitration proceeding is stayed by the

Hon'ble High Court of Delhi in respect of four matters. If that be so, the

arbitration proceeding will be decided by the decision of the Hon'ble High

Court of Delhi. However, the pendency of the case before the Hon'ble High

Court is not to come in the way of the liquidator to decide the claim in

terms of the aforesaid provision as noticed above. -5-

8. We make it clear that we have not expressed any opinion with

regard to the claim of the Appellant, it may be decided by the appropriate

authority/ arbitration proceeding.

All the appeals stand disposed of with aforesaid liberty. No cost.

(Justice S.J. Mukhopadhaya) Chairperson

(Kanthi Narahari) Member(Technical) Ar/g