In Brief
Transmission Corporation of Andhra Pradesh (TCAP), a state electricity transmission company, contracted with Equipment Conductors and Cables Limited (ECCL) for goods and services. When disputes arose, ECCL initiated arbitration. The arbitrator rejected ECCL's claims for invoices 1-57 as time-barred but awarded in favour of ECCL for invoices 58-82. ECCL unsuccessfully challenged the time-barred rejection through Section 34 application and court appeals, and failed to secure execution. ECCL then sought to initiate insolvency proceedings against TCAP under the IBC, claiming unpaid operational debt. The Supreme Court held that the IBC cannot be a substitute for recovery forums and cannot be invoked when a real dispute exists. Since ECCL's claims were already adjudicated as time-barred and not successfully overturned, there was no undisputed operational debt. The Court allowed the appeal, set aside the NCLAT order, and dismissed ECCL's insolvency petition.
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