SRINIVASA REDDY VELAGALA Vs. SRAVANTHI INFRATECH PVT. LTD.

JUDGEMENT

(1.) This appeal arises from the judgment and order dtd. 1/2/2021 passed by the National Company Law Appellate Tribunal at New Delhi ( "NCLAT ") in the Company Appeal (AT) (Insolvency) No. 188 of 2020, preferred by the appellant herein against the admission of the insolvency application filed by the respondent herein under Sec. 9 of the Insolvency and Bankruptcy Code, 2016 ( "IBC "), by which the NCLAT affirmed the order of the National Company Law Tribunal, Amravati Bench ( "NCLT ") admitting the Sec. 9 application and initiating insolvency proceedings against the appellant herein.

(2.) The appellant herein (the corporate debtor) had invited an International Competitive Bid by advertisement dtd. 13/12/2010, for setting up a 225 MW gas based combined cycle Power Station at Bikkavolu, East Godavari District, Andhra Pradesh.

(3.) The respondent herein (the original petitioner before the NCLT), i.e., the operational creditor, was awarded the contract for execution of the aforesaid project as it submitted the lowest bid. The appellant issued the Letter of Award dtd. 24/12/2010 (the "LOA ") to the respondent for an amount of Rs.827.00 crore. The parties subsequently entered into a contract for Engineering Procurement and Construction ( "EPC agreement " / "EPC contract ") dtd. 9/2/2011. It was decided amongst the parties that the EPC contract was supposed to be completed in 14 months. It was mutually agreed between the parties that any disputes arising out of the EPC Agreement shall be referred to arbitration.