Construction Industry News
National Company Law Tribunal (NCLT) has authorized the liquidator of EPC Constructions India Limited to initiate arbitration proceedings against Indian Oil Corporation Limited (IOCL) to recover approximately Rs 1,005 crore in dues, which relate to work carried out by EPC Constructions had carried out for the Paradip refinery project under a turnkey contract in 2011.
The liquidator applied for approval from the National Company Law Tribunal (NCLT), Mumbai before starting the arbitration proceedings against IOCL.
Justice P N Deshmukh and a technical member, Shyam Babu Gautam, said EPC is undergoing liquidation process, the outstanding amount will be beneficial to the liquidation estate. The recovery of Rs 1,005 crore is an asset of EPC as it is part of the liquidation estate and cannot be omitted from the liquidation estate.
EPC has a liability of more than Rs 11,000 crore towards its creditors. NCLT had acknowledged the company for the liquidation process on May 7, 2021, after the lenders were unable to receive a viable revival plan.
Moreover, the tribunal has also allowed the liquidator to initiate proceedings against Matix Fertilizers and Chemicals Limited to recover nearly Rs 310 crore for some offshore and onshore contracts concluded by EPC Constructions India in 2010.
Pooja Tidke, a senior partner at Parinam Law Associates, said the liquidators should effectively pursue sustainable claims against the debtors to maximize their asset value and run it as a going concern.
She added that liquidators face limitations in allocating resources to file major lawsuits, but funding lawsuits can be helpful in removing any restrictions.
