# In the matter of KSK Mahanadi Power Company Ltd. CP (IB) No. 735-9-HDB-2018

> NCLT judgment dated 2019-08-19. Citation: TCN-2019-NCLT-01942. The case involves a Company Petition filed by SEPCO Electric Power Construction against KSK…

- **Court:** NCLT
- **Order date:** 19 Aug 2019
- **Citation:** TCN-2019-NCLT-01942
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ksk-mahanadi-power-company-ltd-cp-ib-no-735-9-hdb-2018-1911a8bd

## Summary

### Background

The case involves a Company Petition filed by SEPCO Electric Power Construction against KSK Mahanadi Power Company under Section 9 of the Insolvency and Bankruptcy Code, 2016, for initiation of Corporate Insolvency Resolution Process (CIRP). The Operational Creditor sought directions from the Adjudicating Authority to treat a part of its debt as Operational Debt and part as Financial Debt. The Adjudicating Authority granted liberty to the Applicant to withdraw and file separate petitions under section 7 and 9 of IB Code, 2016 respectively.

## Facts

SEPCO Electric Power Construction, an Operational Creditor, filed a Company Petition against KSK Mahanadi Power Company Ltd. under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate CIRP. SEPCO also filed an application (IA No.114/2019) seeking directions from the Adjudicating Authority to treat a portion of the debt as Operational Debt and another portion as Financial Debt. The Adjudicating Authority granted SEPCO liberty to withdraw the petition and file separate petitions under Sections 7 and 9 of the IB Code. SEPCO then filed a memo of withdrawal, seeking liberty to file afresh. The relevance of these facts is that they outline the procedural history and the petitioner's decision to withdraw the initial petition in favor of filing separate

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## Issues and analysis

### Issue 1: Whether the Operational Creditor should be granted liberty to withdraw the present application and …

**Ratio:** The legal principle applied is the Adjudicating Authority's discretion to allow

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**Reasoning:** The court reasoned that the Applicant/Operational Creditor had sought directions to treat

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**Interpretation:** The interpretation involves understanding the court's power to permit

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**Application:** The ratio and reasoning were applied to the specific facts of the case, where

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## Parties

- **Judges:** K. Anantha…; BINOD KUMAR…
- **Appellants:** SEPCO Electric…
- **Respondents:** KSK Mahanadi…

## Timeline

- **2018-01-01 — Company Petiti…**: CP(IB) No. 735/9/HDB/2018…
- **2019-05-03 — Order Granting Liberty…**: Adjudicating Authority granted liberty to the Applicant to withdraw and file separate…

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