NCLT Mumbai Directs IL&FS Transportation Networks To Recalculate Savronik JV's Interest At SBI PLR + 2%

The National Company Law Tribunal (NCLT), Mumbai, on 27 October directed IL&FS Transportation Networks Limited (ITNL) to recalculate interest on admitted contractual claims of Savronik BCC JV Construction Private Limited at the State Bank of India (SBI) Prime Lending Rate (PLR) plus 2%, from 16 December 2016.

A Bench of Judicial Member Sushil Mahadeorao Kochey and Technical Member Prabhat Kumar partly allowed an application filed by Savronik BCC JV seeking reconsideration of its claims against ITNL arising from work on the Chenani-Nashri Tunnel project in Jammu and Kashmir.

Savronik BCC JV filed the application on 13 December 2025, challenging the determination of its claims by the Claims Management Advisor (CMA). Against its total claim of approximately Rs. 153.91 crore, it disputed the assessment of several components, including non-scheduled work, withheld payments, third-party supplies, batching plant relocation and interest on retention money. It also challenged the reduction of its previously admitted claim of Rs. 67.04 crore.

The Tribunal held that ITNL could not reject claims relating to non-scheduled work, third-party supplies and batching plant relocation merely by disputing them without producing cogent evidence.

Since ITNL could not verify whether it had received corresponding benefits or raised claims with the developer, the Bench directed that the rates finally approved by ITNL be applied to the quantities and measurements claimed by Savronik BCC JV.

On interest payable on retention money, it noted that the Taking Over Certificate itself recorded that the completion requirements had been fulfilled on 31 March 2017.

Further, the Tribunal held that interest on retention money would therefore be payable from 31 March 2018, upon expiry of the defect liability period, instead of 13 June 2018, as determined by the CMA. The claim was accordingly directed to be recomputed.

It observed that the contract required ITNL to make provisional payments for new items pending finalisation of rates, subject to subsequent adjustments. It also held that delayed final approval of rates could not deprive Savronik BCC JV of interest on amounts that had become provisionally due.

Accordingly, the NCLT partly allowed and disposed of the application.

For Savronik BCC JV: Advocate Vinita Sathiya

For the Respondents: Advocates Karan Sanghani, Deep Roy

For the Union of India: Advocate Onshi Jakhar