This appeal arises from an order passed by the Adjudicating Authority (NCLT, Hyderabad Bench) regarding an Interim Application in a corporate insolvency resolution process (CIRP). The core issue revolves around the termination of a Power Purchase Agreement (PPA) between Gujarat Urja Vikas Nigam Ltd. (GUVNL) and Lanco Infratech Ltd. (the corporate debtor), which is undergoing liquidation. IDBI Bank initiated CIRP against Lanco Infratech, leading to a liquidation order. Yes Bank, a financial creditor, argues that GUVNL's termination of the PPA hinders the maximization of the corporate debtor's asset value. GUVNL contends that it rightfully terminated the PPA due to the initiation of liquidation proceedings against Lanco Infratech, citing clauses within the PPA.
Lanco Infratech Ltd. (corporate debtor) entered into a Power Purchase Agreement (PPA) with Gujarat Urja Vikas Nigam Ltd. (GUVNL) on 24.09.2010, agreeing to supply 15 MW of solar power. IDBI Bank initiated Corporate Insolvency Resolution Process (CIRP) against Lanco Infratech, leading to CIRP commencement on 07.02.2017. Due to the failure of resolution, a liquidation order was passed on 27.08.2018. Yes Bank Limited, a financial creditor, had extended a loan of Rs. 63,50,00,000 to Lanco Infratech, secured by the solar power plant. GUVNL issued a default notice on 23.07.2019, citing clause 9.2.1(e) of the PPA (related to insolvency proceedings) and terminated the PPA on 30.08.2019. Yes Bank contested the termination, arguing it hindered asset value maximization. The
…Sign in to view the parties.
PPA entered into…
Yes Bank Limited…
This appeal arises from an order passed by the Adjudicating Authority (NCLT, Hyderabad Bench) regarding an Interim Application in a corporate insolvency resolution process (CIRP). The core issue revolves around the termination of a Power Purchase Agreement (PPA) between Gujarat Urja Vikas Nigam Ltd. (GUVNL) and Lanco Infratech Ltd. (the corporate debtor), which is undergoing liquidation. IDBI Bank initiated CIRP against Lanco Infratech, leading to a liquidation order. Yes Bank, a financial creditor, argues that GUVNL's termination of the PPA hinders the maximization of the corporate debtor's asset value. GUVNL contends that it rightfully terminated the PPA due to the initiation of liquidation proceedings against Lanco Infratech, citing clauses within the PPA.
Lanco Infratech Ltd. (corporate debtor) entered into a Power Purchase Agreement (PPA) with Gujarat Urja Vikas Nigam Ltd. (GUVNL) on 24.09.2010, agreeing to supply 15 MW of solar power. IDBI Bank initiated Corporate Insolvency Resolution Process (CIRP) against Lanco Infratech, leading to CIRP commencement on 07.02.2017. Due to the failure of resolution, a liquidation order was passed on 27.08.2018. Yes Bank Limited, a financial creditor, had extended a loan of Rs. 63,50,00,000 to Lanco Infratech, secured by the solar power plant. GUVNL issued a default notice on 23.07.2019, citing clause 9.2.1(e) of the PPA (related to insolvency proceedings) and terminated the PPA on 30.08.2019. Yes Bank contested the termination, arguing it hindered asset value maximization. The
…PPA entered into…
Yes Bank Limited…