# In the matter of Sumit Binani Resolution Professional KSK Mahanadi Power company limited  Vs. V. Venkatachalam Resolution Professional Raigarh Champa Infrastructure private limited & Anr. Company Appeal (AT) (CH) (INS) No. 272 of 2021

> NCLAT judgment dated 2021-12-03. Citation: TCN-2021-NCLAT-00025. The appeal was filed against the order passed by the Adjudicating Authority (NCLT, Hyderabad…

- **Court:** NCLAT
- **Order date:** 3 Dec 2021
- **Citation:** TCN-2021-NCLAT-00025
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/sumit-binani-resolution-professional-ksk-mahanadi-power-company-limited-vs-v-ven-8c2169b7

## Summary

### Background

The appeal was filed against the order passed by the Adjudicating Authority (NCLT, Hyderabad Bench-II) in MA No.425 of 2021 in CP No. 187/7/HDB/2020, dated 24.09.2021. The Adjudicating Authority directed the Respondent/Appellant to pay the amount raised in the invoices in accordance with a binding contract. The dispute arose regarding alleged exorbitant pricing related to an agreement entered into before the CIRP. The MA filed by the 1st Respondent was disposed of.

## Facts

KSK Mahanadi Power Company Limited (Appellant) is undergoing CIRP. Raigarh Champa Infrastructure private limited (Respondent) provided railway infrastructure for coal transportation to KSK Mahanadi. A dispute arose regarding invoices raised by Raigarh Champa dated 24.07.2021 for services provided in April, May, and June 2021, based on a transportation agreement dated 31.03.2014. The Appellant claimed the invoices were for three times the actual coal supplied and that the 2014 agreement was not enforced since 2016. The Adjudicating Authority directed the Appellant to pay the invoice amounts. The Appellant filed an appeal against this order. The CIRP of Raigarh Champa is also underway and is expected to end on 18th December 2021. The Appellant has already paid

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in directing the Appellant to pay the invoice amounts …

**Ratio:** Section 14(2A) of the Insolvency and Bankruptcy Code, 2016 mandates payment for the

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**Reasoning:** The Appellant argued that the invoices were for three times the actual coal supplied and

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**Interpretation:** The Adjudicating Authority's order was interpreted as requiring payment based

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**Application:** The Tribunal directed the Appellant to pay 50% of the outstanding dues and

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## Parties

- **Judges:** M. Venu…; KanthiNar…
- **Appellants:** Sumit B…
- **Respondents:** KSK Mahanadi…; 1.V. Venkat…

## Timeline

- **2021-09-24 — Impugned…**: The Adjudicating Authority passed the impugned order in MA No.425 of 2021 in CP No.…
- **2021-11-24 — Hearing…**: The present appeal and…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61(1) — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

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