The NCLT has dismissed an insolvency petition filed by Empire Transport Services Ltd (ETSL) against Noida Metro Rail Corporation observing that there were ‘genuine’ pre-existing disputes between the parties over service quality, contractual obligations and payment deductions.
The Allahabad Bench of NCLT rejected ETSL’s plea seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Noida Metro Rail Corporation (NMRC) under Section 9 of the Insolvency and Bankruptcy Code (IBC).
ETSL had approached the tribunal claiming operational dues of about Rs 7.09 crore arising from a bus operators agreement signed with NMRC on January 15, 2016.
As per the agreement, ETSL was to provide day-to-day running of 100 low-floor AC CNG…