# In the matter of Mr. Sumit Binani, (RP of M/s KSK Mahanadi Power Company Ltd.) Commerce House Vs. Mr. V.Venkatachalam, RP, M/s KSK Water Infrastructures Pvt. Ltd.& Ors. Company Appeal (AT) (CH) (Insolvency) No. 234 of 2021

> NCLAT judgment dated 2022-03-29. Citation: TCN-2022-NCLAT-00563. This case involves appeals against an order by the Adjudicating Authority, Hyderabad Bench,…

- **Court:** NCLAT
- **Order date:** 29 Mar 2022
- **Citation:** TCN-2022-NCLAT-00563
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/mr-sumit-binani-rp-of-ms-ksk-mahanadi-power-company-ltd-commerce-house-vs-mr-vve-5f54af8c

## Summary

### Background

This case involves appeals against an order by the Adjudicating Authority, Hyderabad Bench, regarding payments between KSK Mahanadi Power Company Ltd. (KMPCL) and KSK Water Infrastructure Pvt. Ltd. (KWIPL). KMPCL and KWIPL had a Water Transport Agreement (WTA) in 2014 for water supply to KMPCL's power plant. Due to delays, an amendment agreement was made in 2015, revising the minimum off-take requirements. Disputes arose regarding payments under the WTA, especially after both companies entered Corporate Insolvency Resolution Process (CIRP). The Adjudicating Authority directed KMPCL to make payments as per the 2014 WTA, which led to the appeals.

## Facts

KSK Mahanadi Power Company Ltd. (KMPCL) and KSK Water Infrastructure Pvt. Ltd. (KWIPL) entered into a Water Transport Agreement (WTA) on 2014-03-14 for KWIPL to supply water to KMPCL's power plant. Due to delays in KMPCL's project, a 2015-03-01 amendment revised the minimum off-take requirements. KMPCL and its lenders entered into a Common Loan Agreement (CLA) in October 2016, limiting water transportation charges payable to KWIPL. Both KMPCL and KWIPL entered Corporate Insolvency Resolution Process (CIRP). Disputes arose regarding payments under the WTA, with KWIPL stopping water supply due to non-payment. KMPCL filed an application seeking uninterrupted water supply, but the Adjudicating Authority directed KMPCL to make payments as per the 2014 WTA. KMPCL made ad hoc

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## Issues and analysis

### Issue 1: Whether the issues/reliefs as prayed/sought by the Appellants can be adjudicated upon by this …

**Ratio:** The tribunal's jurisdiction is appellate and does not extend to deciding contractual

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**Reasoning:** The tribunal finds that the core dispute revolves around the interpretation and

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**Interpretation:** The tribunal interprets its role as an appellate body, emphasizing that it

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**Application:** The tribunal applies this principle by declining to adjudicate the contractual

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## Parties

- **Judges:** KanthiNar…
- **Appellants:** Sumit B…
- **Respondents:** KSK Mahanadi…; V. Venkata…

## Timeline

- **2014-03-14 — Water Transport…**: KMPCL and KWIPL entered into a Water Transport Agreement (WTA) for water supply to…
- **2015-03-01 — Amendment Ag…**: An amendment agreement was made, revising the minimum off-take requirements due to delays…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 28(1) — Approval of committee of creditors for certain…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-28)

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