# In the matter of Sri Indra Power Energies Limited C.P. (IB) No. 181-BB-2020

> NCLT judgment dated 2021-04-26. Citation: TCN-2021-NCLT-02306. Kedari Foundation filed a petition under Section 9 of the IBC, 2016, seeking to initiate…

- **Court:** NCLT
- **Order date:** 26 Apr 2021
- **Citation:** TCN-2021-NCLT-02306
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sri-indra-power-energies-limited-cp-ib-no-181-bb-2020-f4e0fc3c

## Summary

### Background

Kedari Foundation filed a petition under Section 9 of the IBC, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Sri Indra Power Energies Limited, alleging default on a principal outstanding amount of Rs. 1,14,85,479.45. The claim includes a principal due of Rs. 90,00,000 and interest of Rs. 24,85,479.45 calculated at 18% p.a. until 03.02.2020. The dispute arose from an Agreement for Sale & Purchase of Power Plant Equipment dated 23.07.2018, where Kedari Foundation agreed to purchase the plant and machineries of Sri Indra Power Energies Limited's biomass power plant. Kedari Foundation paid Rs. 90 Lakh as the first installment, but Sri Indra Power Energies Limited allegedly failed to obtain the necessary NOC from IREDA and issue an

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## Facts

Kedari Foundation and Sri Indra Power Energies Limited entered into an Agreement for Sale & Purchase of Power Plant Equipment on 23.07.2018. Kedari Foundation agreed to purchase Sri Indra Power Energies Limited's biomass power plant for an agreed sale consideration. Clause 2 of the agreement stipulated that Sri Indra Power Energies Limited must obtain NOC/Permission from IREDA for dismantling the plant within two weeks of the first installment payment of Rs. 90 Lakh by Kedari Foundation and issue a Letter of authorization. Kedari Foundation paid Rs. 90 Lakh via demand drafts dated 22.07.2018 and 23.07.2018. Kedari Foundation claims that Sri Indra Power Energies Limited failed to obtain the NOC from IREDA and issue the authorization letter, breaching the contract.

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## Issues and analysis

### Issue 1: Whether the petition filed by Kedari Foundation …

**Ratio:** Section 9 of the IBC, 2016 allows an operational creditor to initiate CIRP against a

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**Reasoning:** The NCLT considered whether the requirements of Section 9 were met, including the

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**Interpretation:** Section 9 provides a mechanism for operational creditors to recover debts from

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**Application:** The NCLT found that Kedari Foundation had demonstrated a default by Sri Indra

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## Parties

- **Judges:** Rajeswara Rao…; Ashutosh C…
- **Appellants:** Kedari Foun…
- **Respondents:** Indra Power…

## Timeline

- **2018-07-23 — Agreement for Sale &…**: Kedari Foundation and Sri Indra Power Energies Limited entered into an Agreement for Sale…
- **2018-07-22 — Payment of First…**: Kedari Foundation paid Rs. 90 Lakh as the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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