Recourse To IBC Is Not Maintainable If Existence Of Debt Is Disputed - IBC Is Not A Recovery Forum

IN THE SUPREME COURT OF INDIA

Transmission Corporation of Andhra Pradesh Ltd. v. Equipment Conductors and Cables Limited.
Civil Appeal No. 9597 OF 2018
Judgment on 23.10.2018

FACTS

Transmission Corporation of Andhra Pradesh Ltd. (the "Appellant" herein) is an Andhra Pradesh Government Enterprise, a successor of Andhra Pradesh State Electricity Board (for short, 'APSEB') and is engaged in the activities relating to transmission of electricity.

Certain contracts were awarded to the Respondent by the Appellant for supply of certain goods and services. However, after disputes arose between the parties, arbitration proceedings were initiated by the Respondent.

The proceedings were instituted before Haryana Micro and Small Enterprises Facilitation Council (Arbitration Council) for 82 claims, and the proceedings concluded with award being passed in favor of Respondent for invoice no. 58-82. Moreover, the arbitral council rejected claim for invoice no. 1-57