# In the matter of Lanco Thermal Power Limited I.A. No. 839-2020 in C.P. No. 519-7-HDB-2018

> NCLT judgment dated 2021-04-26. Citation: TCN-2021-NCLT-02313. The case involves an application filed by the Resolution Professional of Lanco Thermal Power…

- **Court:** NCLT
- **Order date:** 26 Apr 2021
- **Citation:** TCN-2021-NCLT-02313
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/lanco-thermal-power-limited-ia-no-839-2020-in-cp-no-519-7-hdb-2018-637fe575

## Summary

### Background

The case involves an application filed by the Resolution Professional of Lanco Thermal Power Limited under Section 31(1) of the Insolvency & Bankruptcy Code, 2016, read with Regulation 39(4) of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, seeking approval of the resolution plan. The resolution plan includes a scheme of arrangement approved by the Committee of Creditors (CoC) in its sixteenth meeting held on 20.08.2020 with a voting share of 81.60%. The Corporate Insolvency Resolution Process (CIRP) was initiated on 09.05.2019.

## Facts

Lanco Thermal Power Limited underwent Corporate Insolvency Resolution Process (CIRP) initiated on 09.05.2019 following an application under Section 7 of the Insolvency and Bankruptcy Code, 2016. The applicant was appointed as Interim Resolution Professional and later confirmed as Resolution Professional. The Committee of Creditors (CoC) was constituted, comprising various financial creditors including Andhra Bank, Axis Bank, and others. During the CIRP, two Expressions of Interest (EOIs) were received. The CoC negotiated with Resolution Applicants and evaluated the Resolution Plans. The CoC approved a resolution plan submitted jointly by iLabs Hyderabad Technology Centre Private Limited and 50 Hertz Energy Private Limited with 81.6% voting share. The resolution plan

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## Issues and analysis

### Issue 1: Whether the resolution plan submitted by iLabs Hyderabad Technology Centre Private Limited and 50 …

**Ratio:** Section 31(1) of the Insolvency and Bankruptcy Code, 2016, provides that if the

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**Reasoning:** The Adjudicating Authority (NCLT) considered the resolution plan and found that it had

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**Interpretation:** Section 31(1) mandates the Adjudicating Authority to approve a resolution plan

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**Application:** The NCLT applied Section 31(1) to the facts of the case and determined that the

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## Parties

- **Judges:** Bhaskara Pantula…; Veera Brahma Rao…
- **Appellants:** Andhra…
- **Respondents:** Lanco Thermal…; Lanco Thermal…

## Timeline

- **2019-05-09 — Initiation…**: Corporate Insolvency Resolution Process (CIRP) was initiated for Lanco Thermal Power…
- **2019-06-20 — Appointment of…**: Two Registered Valuers were appointed to determine the fair value and liquidation value…

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