Liquidator of EPC Constructions to initiate arbitration against IOCL
POWER & RENEWABLE ENERGY

Liquidator of EPC Constructions to initiate arbitration against IOCL

National Company Law Tribunal (NCLT) has permitted the liquidator of EPC Constructions India Limited to begin arbitration proceedings against Indian Oil Corporation Limited (IOCL) to recover around Rs 1,005 crore in dues, which relate to work that EPC Constructions had carried out for the Paradip refinery project under a turnkey contract in 2011.

The liquidator sought National Company Law Tribunal (NCLT), Mumbai approval before initiating the arbitration proceedings against IOCL.

Justice P N Deshmukh and a technical member, Shyam Babu Gautam, said that EPC is undergoing a 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 a part of the liquidation estate and cannot be left out of 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 7 May 2021, after the lenders were unable to receive any 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 off-shore and on-shore contracts that EPC Constructions India had undertaken back in 2010.

Pooja Tidke, a senior partner at Parinam Law Associates, said that the liquidators must effectively pursue sustainable claims against the debtors to maximise their asset value and direct it as a going concern.

She added that liquidators face constraints in deploying resources to seek large litigations, but litigation financing can be helpful to remove any constraints.

Image Source

Also read: Indian Oil Corp to supply 12-13 fuel cargoes to Sri Lanka

National Company Law Tribunal (NCLT) has permitted the liquidator of EPC Constructions India Limited to begin arbitration proceedings against Indian Oil Corporation Limited (IOCL) to recover around Rs 1,005 crore in dues, which relate to work that EPC Constructions had carried out for the Paradip refinery project under a turnkey contract in 2011. The liquidator sought National Company Law Tribunal (NCLT), Mumbai approval before initiating the arbitration proceedings against IOCL. Justice P N Deshmukh and a technical member, Shyam Babu Gautam, said that EPC is undergoing a 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 a part of the liquidation estate and cannot be left out of 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 7 May 2021, after the lenders were unable to receive any 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 off-shore and on-shore contracts that EPC Constructions India had undertaken back in 2010. Pooja Tidke, a senior partner at Parinam Law Associates, said that the liquidators must effectively pursue sustainable claims against the debtors to maximise their asset value and direct it as a going concern. She added that liquidators face constraints in deploying resources to seek large litigations, but litigation financing can be helpful to remove any constraints. Image Source Also read: Indian Oil Corp to supply 12-13 fuel cargoes to Sri Lanka

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code