# In the matter of Meenakshi Energy Private Limited IA No. 496-2020 in CP (IB) No. 184-7-HDB-2019

> NCLT judgment dated 2020-09-03. Citation: TCN-2020-NCLT-00727. The case involves an application (IA No. 496/2020) filed in the Corporate Insolvency Resolution…

- **Court:** NCLT
- **Order date:** 3 Sept 2020
- **Citation:** TCN-2020-NCLT-00727
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/meenakshi-energy-private-limited-ia-no-496-2020-in-cp-ib-no-184-7-hdb-2019-587873cc

## Summary

### Background

The case involves an application (IA No. 496/2020) filed in the Corporate Insolvency Resolution Process (CIRP) of Meenakshi Energy Ltd (Corporate Debtor). The applicant sought cancellation of a contract/letter of intent granted by the Resolution Professional (RP) for the supply of power to Bangladesh Power Development Board (BPDB) through PTC India Limited. The applicant also sought the opening of bids received by the RP and a direction to award the contract to the lowest bidder. The RP had issued a Request for Proposal (RFP) for the supply of 200 MW power to BPDB from an alternate generation source. The applicant submitted its bid, but the RFP was later withdrawn due to technical issues. The applicant alleged impropriety and filed a complaint with the Insolvency and

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## Facts

Meenakshi Energy Ltd. (MEL) is undergoing Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016 (IBC). State Bank of India initiated the CIRP. Ravi Shankar Devarakonda is the Resolution Professional (RP). MEL had a Power Purchase Agreement (PPA) with Bangladesh Power Development Board (BPDB) through PTC India Limited for power supply. Due to financial constraints, MEL's power plant was not operational. The RP decided to arrange alternate power supply to BPDB. An RFP was issued on 08.06.2020 for 200 MW power supply to BPDB from an alternate source for the period 02.07.2020 to 31.10.2020. Shree Cement Limited submitted a bid on 09.06.2020. The RP withdrew the RFP on 09.06.2020, citing technical reasons. Shree Cement filed a

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority should intervene in the Resolution Professional's decision to …

**Ratio:** The Adjudicating Authority should not intervene in the Resolution Professional's decision

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**Reasoning:** The Resolution Professional withdrew the RFP because BPDB had already approved an

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**Interpretation:** The Resolution Professional has the authority and responsibility to make

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**Application:** In this case, the Resolution Professional's decision to withdraw the RFP was

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## Parties

- **Judges:** K. Anantha…
- **Appellants:** M/s. Shree Cement…
- **Respondents:** Meenakshi Energy…; M/s. Meenakshi…

## Timeline

- **2018-10-09 — Power Purchase…**: PTC enters into a Power Purchase Agreement…
- **2018-10-29 — Power Purchase…**: The Corporate Debtor enters into a Power Purchase Agreement with PTC for generating and…

## 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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