This case involves an appeal filed by Navayuga Engineering Company Limited against an order passed by the National Company Law Tribunal (NCLT), New Delhi, which rejected the Appellant's challenge to its disqualification under Section 29A of the Insolvency and Bankruptcy Code (IBC). The NCLT order pertained to a Corporate Insolvency Resolution Process (CIRP) initiated against Athena Demwe Power Limited, where the Appellant's resolution plan was deemed ineligible due to its alleged control over the Corporate Debtor at the time the Corporate Debtor's account was classified as a Non-Performing Asset (NPA). The Appellant contests this disqualification, arguing that it was neither in management nor a promoter of the Corporate Debtor when the account was declared NPA.
The key facts are as follows:
1. Athena Demwe Power Limited, the Corporate Debtor, was incorporated to execute a hydro-electric project.
2. Navayuga Engineering Company Limited (Appellant) entered into a Memorandum of Understanding (MoU) with the Corporate Debtor and Athena Infraprojects Private Limited (AIPPPL) on 2013-03-15, agreeing to infuse 30% equity capital.
3. The Appellant, through its subsidiary Regina Infrastructure Pvt. Ltd. (RIPL), invested Rs. 235.35 Crores, holding 21.55% equity in the Corporate Debtor.
4. The Corporate Debtor's account was declared NPA on 2013-05-31.
5. A Joint Lenders Meeting in 2015-10-01 determined the Corporate Debtor needed financial assistance.
6. A subsequent MoU in 2016-03-23/28 stipulated the Appellant would become a 51%
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Athena Demwe…
Appellant entered into a Memorandum of…
This case involves an appeal filed by Navayuga Engineering Company Limited against an order passed by the National Company Law Tribunal (NCLT), New Delhi, which rejected the Appellant's challenge to its disqualification under Section 29A of the Insolvency and Bankruptcy Code (IBC). The NCLT order pertained to a Corporate Insolvency Resolution Process (CIRP) initiated against Athena Demwe Power Limited, where the Appellant's resolution plan was deemed ineligible due to its alleged control over the Corporate Debtor at the time the Corporate Debtor's account was classified as a Non-Performing Asset (NPA). The Appellant contests this disqualification, arguing that it was neither in management nor a promoter of the Corporate Debtor when the account was declared NPA.
The key facts are as follows:
1. Athena Demwe Power Limited, the Corporate Debtor, was incorporated to execute a hydro-electric project.
2. Navayuga Engineering Company Limited (Appellant) entered into a Memorandum of Understanding (MoU) with the Corporate Debtor and Athena Infraprojects Private Limited (AIPPPL) on 2013-03-15, agreeing to infuse 30% equity capital.
3. The Appellant, through its subsidiary Regina Infrastructure Pvt. Ltd. (RIPL), invested Rs. 235.35 Crores, holding 21.55% equity in the Corporate Debtor.
4. The Corporate Debtor's account was declared NPA on 2013-05-31.
5. A Joint Lenders Meeting in 2015-10-01 determined the Corporate Debtor needed financial assistance.
6. A subsequent MoU in 2016-03-23/28 stipulated the Appellant would become a 51%
Athena Demwe…
Appellant entered into a Memorandum of…