The National Company Law Tribunal (NCLT) has rejected Uniton Infra's plea to initiate insolvency proceedings against Shapoorji Pallonji & Co concerning work carried out to resurface damaged cement concrete roads in Nellore city.
As reported by Urban Acres, Uniton Infra had filed the petition under Section 9 of the Insolvency and Bankruptcy Code, seeking insolvency proceedings against the company over alleged unpaid operational debt.
The contractor claimed that Shapoorji Pallonji had failed to make payments for the work undertaken to resurface damaged cement concrete roads in the city.
However, the tribunal held that the claim did not satisfy the legal requirements for commencing insolvency proceedings. Uniton Infra had submitted two invoices to support its petition.
According to the tribunal, one of the invoices related to a period covered by the government’s Covid-era ban on filing bankruptcy cases, which was introduced to reduce economic distress during the pandemic.
This ruling highlights the complexities of contract disputes and payment issues in infrastructure projects within Andhra Pradesh, potentially impacting future project implementations.
