NCLT Rejects Insolvency Plea Against Renowned Civil Engineering Company
The National Company Law Tribunal (NCLT) has turned down an insolvency application against B.E. Billimoria and Company, a top civil engineering firm, citing a genuine pre-existing dispute between the parties.
InsolvencyCivil EngineeringReal EstateNcltCorporate DebtReal Estate MumbaiJul 29, 2024
The dispute revolves around a real estate project named 'North Eye' in Noida, Uttar Pradesh, where B.E. Billimoria and Company was the developer. G4S Security System had supplied, installed, tested, and commissioned a 'Fire Alarm System' for the project. However, a dispute arose over the payment of Rs 48,29,928.76, which G4S claimed was outstanding.
The Tribunal held that G4S Security System failed to demonstrate the existence of an operational debt exceeding the threshold limit of default, which is an essential condition for admission of an application under the Insolvency and Bankruptcy Code. B.E. Billimoria and Company, on the other hand, argued that it is a solvent company and a well-known civil engineering firm that cannot be considered insolvent or bankrupt. The company alleged that the application was misconceived and mala fide, and was filed only to pressure and extort money from it.
The Tribunal agreed with B.E. Billimoria and Company, stating that G4S Security System had not disclosed the entire communication with the company, disputing the invoices raised by them. It was also noted that the civil engineering company had already paid a substantial amount under the disputed invoices, and it was G4S Security System that needed to recover the excess amount.
Information
B.E. Billimoria and Company is a renowned civil engineering company with a strong reputation in the industry. The company has been involved in various high-profile projects across the country, including real estate developments and infrastructure projects.
G4S Security System is a leading security service provider that offers a range of security solutions to clients across various industries.
The National Company Law Tribunal (NCLT) is a quasi-judicial body that adjudicates disputes related to companies and corporate entities in India. The NCLT was established under the Companies Act, 2013, and is headed by a President and a Member (Judicial). The Tribunal has benches in various cities across the country, including Mumbai, New Delhi, and Chennai.
Frequently Asked Questions
What is the name of the civil engineering company involved in the dispute?
B.E. Billimoria and Company
What is the amount of debt claimed by G4S Security System?
Rs 48,29,928.76
What is the name of the real estate project involved in the dispute?
North Eye
What is the role of the National Company Law Tribunal?
The NCLT adjudicates disputes related to companies and corporate entities in India.
What is the significance of the NCLT's ruling in this case?
The ruling highlights the importance of genuine pre-existing disputes between parties and the need for creditors to provide concrete evidence to support their claims.
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