VNR Infrastructure Subcontractor Payment Dispute 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.42 of 2022 in C.P.(IB).No.12/10/HDB/2017

Date of Order: 20.05.2026

Period of Dispute: Sub-contract agreement dated 15.07.2015, work execution 2015-2018, contract termination 23.05.2018

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

Regulatory Authorities: North East Frontier Railway Authorities

Key Officials: Mr. Devendra Jain (former IRP/RP), Mr. V. Narayana Reddy (suspended Managing Director)

Applicant alleges Respondent/Liquidator failed to release payments of Rs. 1,58,00,000/- received from North East Frontier Railway for subcontract work executed
Applicant claims completion of more than 30% of subcontract work valued at Rs. 46,70,31,665/- under agreement dated 15.07.2015
Applicant received Rs. 4,65,48,456/- in on-account bills but final bill of Rs. 1,58,00,000/- remains unpaid
Mobilization advance of Rs. 80,00,000/- drawn from NFR Authorities but not released to applicant
Liquidator accused of violating Clause 3 of Sub-Contract Agreement by not releasing corresponding payments received from railway authorities

Tribunal notes that Corporate Debtor was sold as "going concern" on 09.03.2020 for Rs. 12,48,70,000/- (approved 07.07.2021)
Liquidator has not become functus officio and continues residual liquidation functions as per order in IA No.742/2021
Dispute involves contractual claims/receivables affecting liquidation estate reconciliation and distribution
Bill of Rs. 1,58,00,000/- disputed by Liquidator as lacking Measurement Book extracts or Railway Authority countersignature
Multiple connected disputes pending before NCLAT including Company Appeal (AT) (Ins) No. 438 of 2019 and TA (AT) No. 176 of 2021

No monetary penalties imposed in this order
Application dismissed insofar as substantive directions against Liquidator
Limited direction for Liquidator to include subject matter in project-wise and litigation-wise status report as directed in IA No.742/2021
Liquidator directed to make available/hand over any available records to present management of Corporate Debtor
No direction to admit claim, certify bills, accept measurements, or release any amount to Applicant

Liquidator must prepare comprehensive project-wise and litigation-wise status report
Reconciliation of receivables, contractual claims, retained amounts and liabilities required
Proper accounting, reporting and reconciliation of liquidation estate mandated
Transmission of available records to present management of Corporate Debtor ordered

Application dismissed subject to observations and limited directions
Dismissal not construed as adjudication on merits of Applicant's claim
Applicant liberty to pursue remedies against Corporate Debtor under present management/successful going-concern purchaser
Applicant may approach appropriate contractual, statutory or competent forums including Railway Authorities
All rights and contentions of parties left open