NCLT has rejected Uniton Infra’s petition seeking insolvency proceedings against Shapoorji Pallonji over an alleged ₹4.31-crore operational debt. The tribunal held that ₹3.41 crore arose during the COVID-19 exclusion period under Section 10A of the IBC, while the remaining ₹89.60 lakh was below the ₹1-crore threshold.

The NCLT dismissed Uniton Infra’s insolvency petition after finding part of the claim covered by the COVID exclusion period and the balance below the statutory threshold | Representational Image

Mumbai, October 1, 2026: The National Company Law Tribunal (NCLT) has rejected a petition filed by Uniton Infra Private Limited seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Shapoorji Pallonji and Company Private Limited over an alleged operational debt of Rs 4.31 crore.

The tribunal held that the petition was hit by the COVID-19-related exclusion period under Section 10A of the Insolvency and Bankruptcy Code (IBC). It further held that the remaining claim of Rs 89.60 lakh was below the statutory threshold of Rs 1 crore under Section 4 of the Code.

Invoice Falls Under Section 10A

The tribunal noted that one of the two invoices relied upon by Uniton Infra, Invoice No. RKI/SPCPL 2020-21-01 dated September 15, 2020, was for Rs 3,41,56,134 and fell within the Section 10A period.

`;

Under Section 10A, an application under Sections 7, 9 or 10 of the Code cannot be filed for a default arising during the period from March 25, 2020, to March 24, 2021.

The tribunal held that the default arising from the September 15, 2020 invoice could not be considered for adjudication as it fell within the excluded period. It further noted that the remaining alleged default of Rs 89.60 lakh was below the Rs 1 crore threshold prescribed under Section 4 of the IBC.

Subcontracting Led To Debt Claim

According to Uniton Infra, the work was originally awarded to Shapoorji Pallonji and Company by the Nellore Municipal Corporation. The company subsequently subcontracted part of the project to RKI Builders Private Limited for Rs 8.25 crore. RKI later subcontracted the work to Uniton Infra.

RKI had raised two invoices on Shapoorji Pallonji and Company—Rs 3,41,56,154 dated September 15, 2020, and Rs 89.60 lakh dated May 15, 2021. RKI subsequently assigned the alleged outstanding debt of Rs 4,31,16,154 to Uniton Infra through an Assignment of Debt Deed dated April 10, 2022. Uniton Infra thereafter issued a demand notice in May 2023 seeking payment.

Company Disputes Payment Obligation

Shapoorji Pallonji and Company opposed the petition, contending that there was no contractual relationship between it and Uniton Infra. It also argued that the payment obligation was conditional upon receipt of corresponding payments from the Nellore Municipal Corporation.

The company maintained that the required measurements had not been certified by the municipal corporation and, therefore, no amount had become due and payable.

Shapoorji Pallonji also argued that the September 15, 2020 invoice fell within the period covered by Section 10A of the IBC, which bars initiation of insolvency proceedings for defaults arising during the specified COVID-19 period. It contended that the remaining Rs 89.60 lakh claim was below the Rs 1 crore threshold prescribed under Section 4.

Also Watch:

Tribunal Allows Debt Assignment

While examining the assignment of debt, the tribunal rejected the corporate debtor's objection that Uniton Infra could not initiate the proceedings because Shapoorji Pallonji had not consented to the assignment.

To get details on exclusive and budget-friendly property deals in Mumbai & surrounding regions, do visit: https://budgetproperties.in/

Add As a

Trusted Source