# In the matter of Pellet Energy Systems Pvt. Ltd. (IB)-76(PB)-2018

> NCLT judgment dated 2019-02-01. Citation: TCN-2019-NCLT-05054. Uttarakhand Power Corporation Limited filed an application under Section 60 of the Insolvency…

- **Court:** NCLT
- **Order date:** 1 Feb 2019
- **Citation:** TCN-2019-NCLT-05054
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/pellet-energy-systems-pvt-ltd-ib-76pb-2018-14bdcf00

## Summary

### Background

Uttarakhand Power Corporation Limited filed an application under Section 60 of the Insolvency and Bankruptcy Code, 2016, seeking directions for the corporate debtor to pay outstanding dues of Rs. 49,82,789/- which were outstanding since 30.11.2018. The resolution professional filed a reply affidavit on 11.01.2019.

## Facts

Uttarakhand Power Corporation Limited filed an application seeking payment of outstanding dues of Rs. 49,82,789/- from M/s. Pellet Energy systems Pvt. Ltd., outstanding since 30.11.2018. The resolution professional, Ms. Reshma Mittal, informed the court that the CoC had authorized a payment of Rs. 5 lacs to the applicant, with the balance to be paid in installments. The first installment was to be paid by 28.01.2019 and the second by 31.03.2019. A cheque of Rs. 5 lacs was handed over to the applicant's counsel. The RP also stated that the current due shall continue to be paid as per the bill raised.

## Issues and analysis

### Issue 1: Whether the corporate debtor should be directed to make payment of the outstanding dues to the …

**Ratio:** The principle of corporate insolvency resolution process is to ensure the maximization of

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**Reasoning:** The court considered the submissions of the resolution professional and the decision of

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**Interpretation:** The court interpreted Section 60 of the Insolvency and Bankruptcy Code, 2016,

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**Application:** The court applied the ratio to the facts by accepting the CoC's decision to pay

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## Parties

- **Judges:** M. M. K…; DEEPTI M…
- **Appellants:** Oriental Bank of…
- **Respondents:** M/s. Pellet…

## Timeline

- **2016-01-01 — Enactment…**: The Insolvency and…
- **2018-11-30 — Outstandin…**: Outstanding dues of Rs. 49,82,789/- from…

## 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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