# In the matter of Central Transmission Utility of India Ltd. vs. Ashish Chhawchharia RP, Essar Power MP Ltd. & Ors.

> NCLAT judgment dated 2024-05-07. Citation: TCN-2024-NCLAT-00454. The appeal challenges an order dated 2021-11-01 by the Adjudicating Authority (National…

- **Court:** NCLAT
- **Order date:** 7 May 2024
- **Citation:** TCN-2024-NCLAT-00454
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/central-transmission-utility-of-india-ltd-vs-ashish-chhawchharia-rp-essar-power-1c7c2e05

## Summary

### Background

The appeal challenges an order dated 2021-11-01 by the Adjudicating Authority (National Company Law Tribunal, New Delhi) approving a resolution plan for Essar Power M.P. Ltd. (Corporate Debtor) submitted by its Resolution Professional. The appellant, Central Transmission Utility of India Ltd., objected to the resolution plan and the adjudication of its claim, which was treated as a contingent claim of Rs. 1. ICICI Bank Ltd. initiated Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor, which was admitted on 2020-09-29. The Resolution Professional (RP) made a public announcement on 2020-10-10. The Committee of Creditors (CoC) was formed. Four Expression of Interests (EOIs) were received, and two Prospective Resolution Applicants (PRAs) submitted

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## Facts

Central Transmission Utility of India Ltd. (Appellant) filed an appeal against the order of the Adjudicating Authority (NCLT, New Delhi) dated 2021-11-01, which approved the resolution plan for Essar Power M.P. Ltd. (Corporate Debtor). ICICI Bank Ltd. initiated CIRP against Essar Power M.P. Ltd. under Section 7 of the IBC, which was admitted on 2020-09-29. The RP made a public announcement on 2020-10-10. Adani Power Limited's resolution plan was approved by the CoC with 100% votes. The Appellant's claim of Rs. 2643,54,00,000/- was treated as a contingent claim of Rs. 1 due to a pending appeal before the Appellate Tribunal for Electricity (APTEL) regarding relinquishment charges. The liquidation value of the Corporate Debtor was disclosed as Rs. 1733.4 Cr., and the fair

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in approving the resolution plan that provided NIL amount …

**Ratio:** The ratio is based on the interpretation of Section 30(2)(b) and Section 53 of the IBC,

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**Reasoning:** The court reasoned that the liquidation value due to operational creditors was NIL,

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**Interpretation:** The interpretation of Section 30(2)(e) of the IBC is that the resolution plan

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**Application:** The court applied the ratio to the facts of the case by noting that the

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## Parties

- **Judges:** Rakesh Kuma…; Naresh Sa…; +1 more
- **Appellants:** Central Transmissi…
- **Respondents:** Essar Power M. P.…; Ashish Chhawchhari…

## Timeline

- **2021-11-01 — Order by Adjudicating…**: The Adjudicating Authority (National Company Law Tribunal, New Delhi) passed an order…
- **2020-09-29 — CIRP Admi…**: The Corporate Insolvency Resolution Process (CIRP) against Essar Power M.P. Ltd. was…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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