# In the matter of CoC of Shree Maheshwar Hydel Power Corporation Ltd. (Through Power Finance Corporation Ltd.) & Ors.

> NCLAT judgment dated 2023-07-17. Citation: TCN-2023-NCLAT-00365. This is an appeal against the order dated March 17, 2023, passed by the National Company Law…

- **Court:** NCLAT
- **Order date:** 17 Jul 2023
- **Citation:** TCN-2023-NCLAT-00365
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/coc-of-shree-maheshwar-hydel-power-corporation-ltd-through-power-finance-corpora-6516efc1

## Summary

### Background

This is an appeal against the order dated March 17, 2023, passed by the National Company Law Tribunal, Indore Bench, regarding an application bearing IA No. 9 of 2023 filed in TP No. 258 of 2019 CP(IB) No. 111 of 2018. The application sought to remove Respondent No.2 as Resolution Professional (RP) of the Corporate Debtor and reconstitute the Committee of Creditors (CoC). The Adjudicating Authority kept the issue for hearing to decide whether the first or second proviso to Section 21(2) of the Code would apply and directed the RP to keep the CIRP of the Corporate Debtor on hold. An application was filed on 16.02.2018 under Section 7 of the Code against the Corporate Debtor for resolution of a debt exceeding Rs. 1200 Crore, which was admitted to CIRP on 27.09.2022. This

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## Facts

On 16.02.2018, M/s. Power Finance Corporation Ltd (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 against Shree Maheshwar Hydel Power Corporation Ltd (Corporate Debtor) for resolution of a debt exceeding Rs. 1200 Crore. The application was admitted to CIRP on 27.09.2022. Entegra Ltd challenged the admission order. On 21.10.2022, the Tribunal passed an order stating that any action in pursuance of the Impugned Order dated 27.09.2022 shall abide by the result of the Appeal. While the appeal was pending, Entegra Ltd filed an application (IA No. 9 of 2023) before the Adjudicating Authority seeking to remove the RP and reconstitute the CoC. The Adjudicating Authority directed the RP to keep the CIRP on hold. The

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority committed an act of judicial indiscipline by not taking into …

**Ratio:** The principle that a litigant must bring all relevant facts to the notice of the court,

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**Reasoning:** The Tribunal observed that the Adjudicating Authority did not refer to the Tribunal's

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**Interpretation:** The principle emphasizes the importance of transparency and full disclosure in

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**Application:** The Adjudicating Authority's failure to consider the Tribunal's order, despite

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## Parties

- **Judges:** Rakesh Kuma…; Barun M…; +1 more
- **Appellants:** Committee of…
- **Respondents:** Shree Maheshwar…; Entegra…
- **Advocates:** Ramji Srin…; Deepak Kh…; +10 more

## Timeline

- **2018-02-16 — Application…**: M/s. Power Finance Corporation Ltd filed an application under Section 7 of the Code…
- **2022-09-27 — CIRP Admi…**: The application 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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