POWER TRUST (PROMOTER OF HIRANMAYE ENERGY LTD.) Vs. BHUVAN MADAN (INTERIM RESOLUTION PROFESSIONAL OF HIRANMAYE ENERGY).

JUDGEMENT

(1.) Present appeal has been instituted by Power Trust, [Hereinafter "Appellant".] a promoter of Hiranmaye Energy Ltd. [ Hereinafter "Corporate Debtor".] under Sec. 62, Insolvency and Bankruptcy Code, 2016 [ Hereinafter "IBC/The Code".], challenging order dtd. 25/1/2024 by National Company Law Appellate Tribunal, Principal Bench, New Delhi [Hereinafter "NCLAT".]. By the impugned order, NCLAT has upheld order dtd. 2/1/2024 by National Company Law Tribunal, Kolkata Bench [ Hereinafter "NCLT/Adjudicating Authority".], whereby the NCLT admitted an application filed under Sec. 7, IBC [Hereinafter "Sec. 7 application".] by REC Ltd. [Hereinafter "2nd Respondent/Financial Creditor".] and initiated the corporate insolvency resolution process [ Hereinafter "CIRP".] against the Corporate Debtor.

(2.) A common loan agreement dtd. 19/6/2013 was entered into between the Corporate Debtor and 2nd Respondent to avail a term loan of Rs.1859.00 crore for setting up of a thermal power plant at Haldia, West Bengal. Due to cost overruns, on 30/10/2015, the Corporate Debtor availed an additional term loan facility of Rs.446.97 crore. Subsequently, the Corporate Debtor entered into a power purchase agreement [Hereinafter "PPA".] with the West Bengal State Electricity Distribution Company Ltd. [Hereinafter "WBSEDCL".].

(3.) On 30/6/2018, 2nd Respondent classified the accounts of Corporate Debtor as non-performing assets due to alleged default committed by the Corporate Debtor in making due payments.