Authority: National Company Law Tribunal (NCLT), Kolkata Bench

Order Date: 10 June 2026

Case Overview

This order pertains to a petition (C.P. (IB) No. 185/KB/2025) filed by Brick2Wall Infratech Private Limited (Operational Creditor) under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, against Tirupati Build-Con Private Limited (Corporate Debtor). The dispute arose from the supply of Bitumen VG-40. The Operational Creditor supplied goods worth Rs. 2,23,90,500/- based on purchase orders dated 10.03.2025, invoiced through eight invoices raised between 11.03.2025 and 30.03.2025. An amount of Rs. 1,39,84,279/- remained unpaid. The Corporate Debtor had issued three post-dated cheques totaling Rs. 1.5 crores (Cheque Nos. 435947, 435946, 435948, all dated 07.03.2025), which were dishonored due to insufficient funds. A partial payment of Rs. 5 lakhs was made on 26.05.2025. The Operational Creditor issued a statutory demand notice under Section 8 of the IBC on 06.06.2025, claiming a total due of Rs. 1,40,96,857/- (including interest). The Corporate Debtor replied on 29.06.2025, raising a dispute for the first time. It contended that the purchase orders were cancelled because the Operational Creditor failed to obtain a mandatory 'source approval' for the bitumen as required by a circular from the Ministry of Road Transport and Highways dated 23.08.2023. The Corporate Debtor claimed this failure led to its own payments from the project authority (L.N. Malviya Infra Projects Pvt. Ltd.) being withheld, as evidenced by a letter from the authority engineer dated 06.04.2025.

Final Outcome

The NCLT bench, comprising Smt. Bidisha Banerjee (Member Judicial) and Cmde Siddharth Mishra (Member Technical), admitted the petition and initiated the Corporate Insolvency Resolution Process (CIRP) against Tirupati Build-Con Private Limited. The tribunal held that the dispute regarding source approval was not a 'pre-existing dispute' as defined by the Supreme Court in Mobilox Innovations v. Kirusa Software, as it was raised for the first time only in reply to the Section 8 demand notice, not before it. The Corporate Debtor's consumption of the supplied goods and its director's email dated 23.06.2026 acknowledging the debt and attributing non-payment to financial constraints further weakened its case. The default amount was above the Rs. 1 crore threshold, and the application was within the limitation period.

The tribunal passed comprehensive orders:

  • The application was admitted, and CIRP was initiated against the Corporate Debtor.
  • A moratorium under Section 14 of the IBC was declared, prohibiting suits, asset transfers, enforcement of security interest, and recovery of property against the Corporate Debtor.
  • Ms. Mamta Binani (IBBI/IPA-002/IP-N00086/2017-18/10227) was appointed as the Interim Resolution Professional (IRP).
  • The IRP was directed to make a public announcement immediately to call for claims.
  • The management of the Corporate Debtor was vested in the IRP, and its officers were directed to provide all documents and information.
  • The IRP was authorized to seek police assistance to take charge of the Corporate Debtor's assets and documents.
  • The Financial Creditors were directed to pay an advance fee of Rs. 3,00,000/- to the IRP.
  • The registry was directed to communicate the order to all parties, the IBBI, and the Registrar of Companies (ROC), West Bengal.
  • The matter was posted for further hearing on 20.07.2026 for the IRP's progress report.

Topics: Insolvency, Construction Dispute, Operational Debt