VNR Infrastructure Subcontractor Payment Claim Dismissed

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.45 of 2022 in C.P.(IB).No.12/10/HDB/2017

Date of Order: 20.05.2026

Period of Dispute: Sub-contract agreement dated 18.01.2017, contract terminated on 01.07.2019

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

Regulators/Judicial Members: Shri Rajeev Bhardwaj (Hon'ble Member Judicial), Shri Sanjay Puri (Hon'ble Member Technical)

Counsel: For Applicant - Mr. M. Anil Kumar; For Respondent - Ms. JVL Bharati along with Liquidator Mr.T.S.N.Raja

The Applicant claimed ₹3,50,46,914/- as final bill amount and ₹34,21,122/- as PVC bill for subcontract works executed for North East Frontier Railway projects
Alleged that Liquidator received payments from NFR Authorities but failed to release corresponding amounts to Applicant in violation of Sub-Contract Agreement clauses 3 and 5
Claimed Liquidator cancelled Power of Attorney preventing submission of PVC bills to NFR Authorities
Alleged discriminatory treatment as Respondent released payments to other subcontractors (Prakash Enterprises ₹57,78,040 and Datta Supply Agency ₹1,60,00,000) without objection
Stated that NFR Authorities were willing to release payments if final bills and measurements were submitted by Respondent

The Tribunal found the application sought mandatory directions that would require adjudication of disputed facts
Noted that relief would require determination of measurement certification, entitlement, PVC bills, stock reconciliation, materials, equipment, royalty terms, alleged set-off, and losses from contract termination
Observed that connected disputes including earlier directions for release of amounts and bank guarantee-related issues are pending before NCLAT in Company Appeal (AT) (Ins) No. 438 of 2019 and TA (AT) No. 176 of 2021
Referenced order dated 25.02.2026 in IA No.742 of 2021 which noted that VNR was sold as a going concern on 09.03.2020 for ₹12,48,70,000 with approval on 07.07.2021, but liquidation process remains incomplete
Found that Liquidator continues to remain accountable for residual liquidation functions including proper segregation of assets, reconciliation of estate accounts, and lawful distribution under Section 53

The substantive reliefs sought against the Liquidator were dismissed
Limited direction given to Liquidator to take note of this matter while preparing project-wise and litigation-wise status report as directed in IA No.742 of 2021
Liquidator directed to make available/hand over any available records relating to Applicant's subcontract works to present management of Corporate Debtor
No monetary penalties or settlements ordered

Liquidator must include this claim in residual liquidation accounting and reconciliation exercise
Liquidator to prepare comprehensive project-wise and litigation-wise status report as previously directed
Liquidator to ensure proper segregation of transferred and retained assets
Liquidator to maintain complete and transparent accounts of liquidation estate
Liquidator to complete statutory compliances and filings

The application was dismissed insofar as it sought substantive directions against the Liquidator
Dismissal not construed as adjudication on merits of Applicant's claim
Applicant left liberty 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
The subject matter remains part of broader residual liquidation accounting exercise