# In the matter of Lanco Teesta Hydro Power Limited IA 693-2018 & IA 200-2019 In CP (IB) No. 117-7-HDB-2018

> NCLT judgment dated 2019-05-13. Citation: TCN-2019-NCLT-03319. The case involves the Corporate Insolvency Resolution Process (CIRP) of Lanco Teesta Hydro…

- **Court:** NCLT
- **Order date:** 13 May 2019
- **Citation:** TCN-2019-NCLT-03319
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/lanco-teesta-hydro-power-limited-ia-693-2018-ia-200-2019-in-cp-ib-no-117-7-hdb-2-5cf6daf7

## Summary

### Background

The case involves the Corporate Insolvency Resolution Process (CIRP) of Lanco Teesta Hydro Power Limited. ICICI Bank initiated the CIRP under Section 7 of the Insolvency and Bankruptcy Code (IBC). Several applications were filed, including those by NHPC (Resolution Applicant), MSEDCL (Maharashtra State Electricity Distribution Company Limited), and the Resolution Professional. Key issues revolve around the approval of the resolution plan, the impleadment of parties, and disputes related to a Power Purchase Agreement (PPA) between MSEDCL and Lanco Teesta Hydro Power Limited. Additionally, there was an issue of theft of materials from the power plant, leading to a request for a reduction in the bid amount.

## Facts

ICICI Bank initiated CIRP against Lanco Teesta Hydro Power Limited under Section 7 of IBC. NHPC submitted a resolution plan, which was approved by the CoC with 100% voting share. MSEDCL sought to intervene, claiming a valid PPA with Lanco Teesta, disputing its termination. The Resolution Professional opposed MSEDCL's intervention, arguing lack of jurisdiction and limitation. Theft occurred at the power plant, leading to a request for bid amount reduction. The Resolution Professional took steps to safeguard the assets and lodged a police complaint. MSEDCL and Lanco Teesta had approached MERC regarding the PPA prior to CIRP. The Corporate Debtor terminated the PPA on 14.09.2014, which MSEDCL disputes. The Resolution Professional filed IA 693/2018 for approval of the

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## Issues and analysis

### Issue 1: Whether the NCLT has jurisdiction to adjudicate contractual disputes arising from the Power …

**Ratio:** The NCLT does not have jurisdiction to adjudicate contractual disputes under Section

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**Reasoning:** The court reasoned that the primary issue before it was the approval of the resolution

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**Interpretation:** Section 60(5) of the IBC does not extend the NCLT's jurisdiction to cover all

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**Application:** The court applied this principle by stating that the dispute over the PPA's

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## Parties

- **Judges:** Ratakonda…
- **Appellants:** ICICI Ban…
- **Respondents:** Lanco Teesta…

## Timeline

- **2018-03-16 — CIRP Admi…**: Petition filed by ICICI Bank Ltd under Section 7 of the Code against Lanco Teesta Hydro…
- **2018-04-24 — First CoC H…**: The Committee of Creditors (CoC) was…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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