# In the matter of Lanco Amarkantak Power Limited IA No. 560-2020 in CP (IB) No. 420-7-HDB-2019

> NCLT judgment dated 2020-09-21. Citation: TCN-2020-NCLT-00558. M/s NRSKS Mines and Minerals Private Limited filed an Interlocutory Application (IA…

- **Court:** NCLT
- **Order date:** 21 Sept 2020
- **Citation:** TCN-2020-NCLT-00558
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/lanco-amarkantak-power-limited-ia-no-560-2020-in-cp-ib-no-420-7-hdb-2019-118caf46

## Summary

### Background

M/s NRSKS Mines and Minerals Private Limited filed an Interlocutory Application (IA No.560/2020) in CP (IB) No.420/7/HDB/2019 under Section 60(5) of the IB Code, 2016, against the Resolution Professional of M/s Lanco Amarkantak Power Limited. The applicant sought a declaration that the Resolution Professional's actions of inviting fresh tenders were arbitrary and illegal, and to set aside the fresh tenders. The applicant had existing contracts with the Corporate Debtor for coal transportation, which they claimed were being improperly terminated by the Resolution Professional.

## Facts

M/s NRSKS Mines and Minerals Private Limited (Applicant) had existing contracts with M/s Lanco Amarkantak Power Limited (Corporate Debtor) for coal transportation. The Corporate Debtor was admitted into CIRP on 05.09.2019, and a Resolution Professional (Respondent) was appointed. The contracts between the Applicant and the Corporate Debtor were valid from 01.04.2019 to 31.03.2020, with a clause for extension to 31.03.2021 based on performance. The Corporate Debtor floated a fresh tender on 21.03.2020 for coal transportation. The Applicant was granted a three-month extension until 30.06.2020. The Applicant filed IA No.560/2020 seeking to prevent the Resolution Professional from inviting fresh tenders, arguing that the existing contracts were still valid. The Resolution

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## Issues and analysis

### Issue 1: Whether the Resolution Professional's action of inviting fresh tenders for coal transportation is …

**Ratio:** The principle is that contracts are extendable based on satisfactory performance and

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**Reasoning:** The court reasoned that the Resolution Professional's extension of the applicant's tenure

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**Interpretation:** The court interpreted the contract's 'extendable' clause to mean that the

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**Application:** The court applied this reasoning to the facts, noting that the applicant's

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## Parties

- **Judges:** Shri. K. Anantha…
- **Appellants:** M/s NRSKS Mines…
- **Respondents:** M/s Lanco…; Saurabh Kumar…

## Timeline

- **2019-02-18 — Contract/Work Orders…**: Corporate Debtor issued work…
- **2019-03-07 — Contract/Work Orders…**: Corporate Debtor issued work orders…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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