NCLT Dismisses SS Rail Works' Payment Claim Against VNR Liquidator

Case Name: M/s. SS Rail Works Pvt. Ltd. vs M/s. VNR Infrastructure Limited (under liquidation)

Court/Authority: National Company Law Tribunal, Hyderabad Bench-II

Case Number: I.A. No.39 of 2022 in C.P.(IB).No.12/10/HDB/2017

Date of Order: 20 May 2026

Period of Dispute: Sub-contract agreement dated 21 December 2016, contract terminated on 23 May 2018

Petitioner/Applicant: M/s. SS Rail Works Pvt. Ltd., represented by its Chief Executive Officer Mr. A. Srinivasulu Reddy

Respondent: M/s. VNR Infrastructure Limited (under liquidation), represented by its Liquidator Mr. T.S.N. Raja

Judicial Members: Shri Rajeev Bhardwaj (Member-Judicial), Shri Sanjay Puri (Member-Technical)

Counsel: For Applicant - Mr. M. Anil Kumar; For Respondent - Ms. JVL Bharati along with Mr. TSN Raja, Liquidator

Applicant sought direction to Liquidator to accept measurements and final bills for subcontract works executed under principal contract with North East Frontier Railway Authorities
Claimed Rs. 7,76,155/- as final bill amount measured and finalized by Railway Department but not processed by Liquidator
Alleged Liquidator violated Clauses 3 and 5 of Sub-Contract Agreement by not releasing payments received from NFR Authorities corresponding to work executed by Applicant
Contended Liquidator received Rs. 16,88,27,523/- for works executed by Applicant but paid only Rs. 14,44,38,808/-, leaving balance of Rs. 2,43,88,750/-
Previous order in IA No.676/2018 directed release of amounts, currently appealed and stayed by NCLAT

Tribunal noted subsequent position from order dated 25.02.2026 in IA No.742/2021 where Corporate Debtor was sold as "going concern" on 09.03.2020 for Rs. 12,48,70,000/-, approved on 07.07.2021
Held that sale of corporate debtor as going concern does not ipso facto complete liquidation process
Liquidator continues accountable for residual functions including segregation of assets, reconciliation of accounts, distribution under Section 53
Subject matter bears upon residual liquidation exercise concerning contractual claims/receivables/liabilities
Relief sought would require adjudication of disputed questions on measurement, certification, entitlement, PVC bills, stock reconciliation, materials, equipment, royalty, alleged set-off, losses, termination effects
Ambiguity exists regarding scope of assets transferred under going concern sale and receivables retained in liquidation estate

No monetary penalties imposed
Substantive reliefs seeking mandatory direction to Liquidator to accept measurements and process bills dismissed
Limited direction: Liquidator to take note of subject matter while preparing project-wise and litigation-wise status report as directed in IA No.742/2021
Liquidator to make available/hand over any available records relating to Applicant's subcontract works to present management of corporate debtor
Dismissal not construed as adjudication on merits of Applicant's claim

Liquidator to include claim in reconciliation exercise for proper accounting, reporting and reconciliation of liquidation estate
Transmission of available records to present management of corporate debtor sold on as-is-where-is basis
No admission of Applicant's claim through this process

Interlocutory Application dismissed subject to observations and limited directions
Applicant liberty preserved to pursue remedies against corporate debtor under present management/successful going-concern purchaser
Applicant may approach appropriate contractual, statutory or competent forum including Railway Authorities
All rights and contentions of parties left open
Liquidator continues residual functions until demonstrable compliance with directions in IA No.742/2021 and filing of corrected Final Report and Form H