# In the matter of Damodar Valley Corporation vs. Mackeil Ispat & Forging Ltd. & Ors.

> NCLAT judgment dated 2025-02-06. Citation: TCN-2025-NCLAT-00237. This Company Appeal challenges an order dated 14.09.2023 passed by the National Company Law…

- **Court:** NCLAT
- **Order date:** 6 Feb 2025
- **Citation:** TCN-2025-NCLAT-00237
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/damodar-valley-corporation-vs-mackeil-ispat-forging-ltd-ors-7256de5b

## Summary

### Background

This Company Appeal challenges an order dated 14.09.2023 passed by the National Company Law Tribunal (NCLT), Kolkata Bench, regarding I.A. No. 1336/KB/2022 and I.A. No. 463/2022 in C.P. (IB) No. 213/KB/2019. The core issue revolves around the claims of Damodar Valley Corporation (DVC) against Mackeil Ispat & Forging Ltd. (Corporate Debtor) for pre-CIRP dues, and whether DVC is entitled to recover these dues after the approval of a Resolution Plan. The Corporate Debtor was receiving electricity supply from DVC under a Power Purchase Agreement. CIRP was initiated against the Corporate Debtor on 03.02.2020. DVC disconnected the electricity supply, which was later restored following an order by the Adjudicating Authority. A Resolution Plan was approved on 21.09.2021.

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## Facts

Mackeil Ispat & Forging Ltd. (Corporate Debtor) received electricity from Damodar Valley Corporation (DVC) under a Power Purchase Agreement dated 14.12.2009. A Section 7 application was admitted against the Corporate Debtor on 03.02.2020, filed by the State Bank of India (SBI), initiating the Corporate Insolvency Resolution Process (CIRP). DVC disconnected the electricity on 19.02.2020, but it was restored on 19.10.2020 following an order by the Adjudicating Authority. DVC filed a claim with the Resolution Professional (RP) on 30.11.2020, which was admitted to the extent of ₹2,32,13,387/-. A Resolution Plan was approved on 21.09.2021, allocating ₹4,64,003/- to DVC. The Corporate Debtor informed DVC on 29.10.2021 that they were ready to pay ₹4.643 Lakhs as per the

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority had jurisdiction to entertain the applications filed by the …

**Ratio:** Section 60(5) of the Insolvency and Bankruptcy Code (IBC) grants the Adjudicating

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**Reasoning:** The Adjudicating Authority's jurisdiction extends to matters concerning the

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**Interpretation:** Section 60(5)(c) provides a broad scope for the Adjudicating Authority to

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**Application:** The Corporate Debtor's application seeking a refund of pre-CIRP dues and

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## Parties

- **Judges:** Ashok Bh…; Barun M…; +1 more
- **Appellants:** Damodar Valley…
- **Respondents:** Mackeil Ispat &…

## Timeline

- **2009-12-14 — Power Purchase…**: Mackeil Ispat & Forging Ltd. and Damodar Valley Corporation entered into a Power Purchase…
- **2020-02-03 — CIRP Init…**: A Section 7 application was admitted against Mackeil Ispat & Forging Ltd., initiating the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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