The insolvency plea arose from SPML Infra’s claim relating to extra item rate list (EIRL) works executed for the Nanjapura Lift Irrigation Scheme pursuant to a contract awarded in 1999. The additional works were completed by 2009 and the final bill was submitted in 2013.
SPML claimed that although CNNL repeatedly acknowledged the dues over the years while seeking internal approvals, payment was never released. The operational creditor claimed ₹9.36 crore, including interest.
CNNL opposed the petition, arguing that the debt was disputed and that related issues were pending before an arbitrator appointed in 2004.
Rejecting this defence, the NCLT comprising Member (Judicial) Sunil Kumar Aggarwal and Member (Technical) Radhakrishna…