TERO Ltd. entered into supply contract with Telecom Regulatory Authority of India (TRAI) for supply of fibre optic cables. TRAI has defaulted in paying invoice value as per demand notice issued to them. TERO Ltd. filed C

According to Section 3(7) of Insolvency & Bankruptcy Code, "Corporate Person" means a company as defined in clause (20) of section 2 of the Companies Act, 2013, a limited liability partnership, as defined in clause (n) of sub-section (1) of section 2 of the Limited Liability Partnership Act, 2008, or any other person incorporated with limited liability under any law for the time being in force but shall not include any financial service provider. In Hindustan Construction Company Limited & Another Vs. Union of India & Others [WP (Civil) No. 1074/2019 with other Civil Appeals] , a CIRP was sought to be initiated against the National Highway Authority of India. The Supreme Court held that the National Highway Authority of India is a statutory body that functions as an extended limb of the Central Government and performs governmental functions that cannot be taken over by an RP under the Insolvency & Bankruptcy Code or by any other corporate body. Nor can such authority ultimately be wound up under the Insolvency & Bankruptcy Code. For all these reasons, it is not possible to either read in or read down the definition of "corporate person" in section 3(7) of the IBC. Therefore, TRAI is not a corporate debtor for the purposes of the Insolvency & Bankruptcy Code and, consequently, a Corporate Insolvency Resolution Process against TRAI cannot be initiated under section 7, 9, or 10 of the IBC. Hence, TERO Limited will not succeed in CIRP application against TRAI.