# In the matter of Om Shakthi Renergies Limited IA No. 03 of 2020 in C.P. (IB) No. 277-7-HDB-2019

> NCLT judgment dated 2020-11-25. Citation: TCN-2020-NCLT-00210. The case involves an application (IA No.3 of 2020) filed by the Resolution Professional in…

- **Court:** NCLT
- **Order date:** 25 Nov 2020
- **Citation:** TCN-2020-NCLT-00210
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/om-shakthi-renergies-limited-ia-no-03-of-2020-in-cp-ib-no-277-7-hdb-2019-6429a3d4

## Summary

### Background

The case involves an application (IA No.3 of 2020) filed by the Resolution Professional in CP(IB) No.277/9/HDB/2019 under sections 33 and 34 of the Insolvency and Bankruptcy Code (IBC), 2016, seeking an order for the liquidation of the Corporate Debtor, Om Shakti Renergies. The Corporate Insolvency Resolution Process (CIRP) was initiated earlier, and an Interim Resolution Professional (IRP), Shri Chillale Rajesh, was appointed. The IRP was later appointed as Resolution Professional by the Committee of Creditors (CoC).

## Facts

The Corporate Debtor, Om Shakti Renergies, underwent Corporate Insolvency Resolution Process (CIRP) following the admission of a petition by the Tribunal on 2019-09-16. Shri Chillale Rajesh was appointed as the Interim Resolution Professional (IRP) and later as the Resolution Professional. A public announcement for the initiation of CIRP was made on 2019-09-20. An appeal against the admission order was dismissed by the NCLAT on 2020-02-07. The Committee of Creditors (CoC) considered a Techno Economic Viability Report, which indicated that the Corporate Debtor's plant was not economically viable due to factors such as the remaining term of the Power Purchase Agreement (PPA) with APTRANCO (expiring in 4 years), unfavorable tariff rates, and the difficulty in finding

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority should order the liquidation of the Corporate Debtor, Om Shakti …

**Ratio:** Section 33 of the Insolvency and Bankruptcy Code, 2016, allows the Adjudicating Authority

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**Reasoning:** The Adjudicating Authority noted that no resolution plan was received for the Corporate

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**Interpretation:** Section 33(1) of the I&B Code provides that where the Adjudicating

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**Application:** Since no resolution plan was received and the CoC recommended liquidation, the

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## Parties

- **Judges:** K. Anantha…; Veera Brahma Rao…
- **Respondents:** Om Shakti…

## Timeline

- **2019-09-16 — Admission of…**: The Tribunal admitted the petition for…
- **2019-09-20 — Public Annou…**: Public announcement for…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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