# In the matter of NSL Nagapatnam Power and Infratech Limited CP (IB) No. 306-10-HDB-2017

> NCLT judgment dated 2018-01-18. Citation: TCN-2018-NCLT-01920. NSL Nagapatnam Power & Infratech Limited filed a Company Petition under Section 10 of the…

- **Court:** NCLT
- **Order date:** 18 Jan 2018
- **Citation:** TCN-2018-NCLT-01920
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/nsl-nagapatnam-power-and-infratech-limited-cp-ib-no-306-10-hdb-2017-671b49ff

## Summary

### Background

NSL Nagapatnam Power & Infratech Limited filed a Company Petition under Section 10 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP). The company faced financial distress and was unable to repay a Bridge Loan and other liabilities. The project faced delays due to changes in government policies affecting fuel supply and power purchase agreements. The company also explored options for equity investment and sale/transfer of project assets.

## Facts

NSL Nagapatnam Power & Infratech Limited (Corporate Debtor) filed a petition under Section 10 of the IBC, 2016, to initiate CIRP. PTC India Financial Services Limited (Financial Creditor) sanctioned a Bridge Loan of Rs. 125 Crores to the Corporate Debtor for a thermal power project in Odisha. The project faced delays due to policy changes affecting Fuel Supply Agreements (FSA) and Power Purchase Agreements (PPA). The Corporate Debtor was unable to repay the Bridge Loan and other liabilities. The Financial Creditor issued a notice under Section 13(2) of SARFAESI Act, 2002, for outstanding dues of Rs. 111,85,65,811/-. The Corporate Debtor offered a one-time settlement which was rejected by the Financial Creditor. The Corporate Debtor also explored options for equity

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## Issues and analysis

### Issue 1: Whether the present Company petition bearing CP (IB) No. 306/10/HDB/2017 filed by NSL Nagapatnam …

**Ratio:** Section 10 of the Insolvency and Bankruptcy Code, 2016 allows a corporate debtor to

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**Reasoning:** The court examined the application and supporting documents and found that the

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**Interpretation:** Section 10 provides a mechanism for a corporate debtor facing financial

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**Application:** The court found that the Corporate Debtor had admitted to the debt and default.

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## Parties

- **Judges:** Rajeswara Rao…; RavikumarDu…
- **Appellants:** NSL Nagapatnam…
- **Respondents:** PTC India…

## Timeline

- **2014-02-05 — Sanction of Br…**: PTC India Financial Services Limited sanctioned a Bridge Loan of Rs. 125 Crores to NSL…
- **2014-03-10 — Agreement relating to…**: Agreement relating to the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 10 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-10)

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