# In the matter of Gujarat Urja Vikas Nigam Limited vs. Udayraj Patwardhan

> NCLAT judgment dated 2024-09-23. Citation: TCN-2024-NCLAT-00182. Gujarat Urja Vikas Nigam Limited (GUVNL) filed an appeal against the Impugned Order dated…

- **Court:** NCLAT
- **Order date:** 23 Sept 2024
- **Citation:** TCN-2024-NCLAT-00182
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/gujarat-urja-vikas-nigam-limited-vs-udayraj-patwardhan-a597e591

## Summary

### Background

Gujarat Urja Vikas Nigam Limited (GUVNL) filed an appeal against the Impugned Order dated 25.04.2024 passed by the National Company Law Tribunal (NCLT), New Delhi, Court – III, in application being IA-1241/2023 in CP No. (IB) – 1083 (PB)/2018. The NCLT rejected GUVNL's claims of Rs. 3,36,09,886/- against Adel Landmarks Private Limited, the Corporate Debtor. The appeal arises from a Power Purchase Agreement (PPA) between GUVNL and the Corporate Debtor, where GUVNL claimed compensation for the termination of the PPA due to the Corporate Debtor's inability to supply power. The core issue revolves around the validity of GUVNL's claim given the initiation of the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor and the subsequent moratorium imposed

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## Facts

Gujarat Urja Vikas Nigam Limited (GUVNL) and Adel Landmarks Private Limited (Corporate Debtor) entered into a Power Purchase Agreement (PPA) dated 29.05.2007. The Corporate Debtor could not supply power since March 2015, leading to a default under the PPA. GUVNL issued a default notice on 15.06.2019 and a termination notice on 25.11.2019, seeking compensation of Rs. 3.36 Crores. GUVNL filed a petition before the Gujarat Electricity Regulatory Commission on 04.07.2020 for recovery of the amount. GUVNL came to know about the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor and withdrew its petition before the Gujarat Electricity Regulatory Commission. GUVNL filed its claims in Form B with the Resolution Professional (RP) on 01.07.2021. The RP

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## Issues and analysis

### Issue 1: Whether the Appellant was entitled to terminate …

**Ratio:** Section 14 of the Insolvency and Bankruptcy Code (IBC) imposes a moratorium upon the

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**Reasoning:** The tribunal reasoned that the main reason for the rejection of the claim by the

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**Interpretation:** Section 14 is interpreted to mean that once a moratorium is in place, several

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**Application:** In this case, the Appellant terminated the PPA after the CIRP had commenced and

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## Parties

- **Judges:** Rakesh Kuma…; Naresh Sa…; +1 more
- **Appellants:** Gujarat Urja…
- **Respondents:** Adel Landmarks…; Udayraj Pat…

## Timeline

- **2007-05-29 — Power Purchase…**: Gujarat Urja Vikas Nigam Limited (GUVNL) entered into a Power Purchase Agreement (PPA)…
- **2015-03-01 — Corporate Debtor Stops…**: The Corporate Debtor could not supply power since March 2015, leading to a default under…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61 — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

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