# In the matter of Warasgaon Power Supply Limited CP (IB) 937-MB-C-II-2020

> NCLT judgment dated 2021-02-14. Citation: TCN-2021-NCLT-03053. The case pertains to a Company Petition filed by Warasgaon Power Supply Limited, the Corporate…

- **Court:** NCLT
- **Order date:** 14 Feb 2021
- **Citation:** TCN-2021-NCLT-03053
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/warasgaon-power-supply-limited-cp-ib-937-mb-c-ii-2020-596f188b

## Summary

### Background

The case pertains to a Company Petition filed by Warasgaon Power Supply Limited, the Corporate Debtor, through the Resolution Professional of Lavasa Corporation Limited (LCL), seeking initiation of Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor is a wholly owned subsidiary of Lavasa Corporation Limited (LCL). The Corporate Applicant is the Resolution Professional of Lavasa Corporation Limited (LCL). LCL is already undergoing CIRP. The Corporate Applicant states that two other wholly owned subsidiaries, Dasve Convention Centre Ltd. ("DCCL") and Warasgaon Asset Management Ltd. ("WAML") are also undergoing CIRP before this Adjudicating Authority. The Corporate Applicant submits that the primary rationale for consolidating the CIRP

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## Facts

Warasgaon Power Supply Limited (WPSL), a wholly owned subsidiary of Lavasa Corporation Limited (LCL), filed a petition for initiation of Corporate Insolvency Resolution Process (CIRP). LCL is already undergoing CIRP, and WPSL owes debts to creditors who are also the Financial Creditors of LCL. L&T Infrastructure Finance Co. is the sole Financial Creditor of WPSL and also a Financial Creditor of LCL. WPSL's business is to develop, operate, and maintain the power and infrastructure of the Lavasa Project, which is owned by LCL. The Corporate Debtor availed a Term loan facility from L&T Infrastructure Finance Company Limited. LCL furnished Corporate Guarantees in favor of the Corporate Debtor. An inter-corporate deposit was advanced by LCL to the Corporate Debtor.

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## Issues and analysis

### Issue 1: Whether the petition filed under Section 10 of the Insolvency and Bankruptcy Code, 2016, for …

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

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**Reasoning:** The Adjudicating Authority considered the submissions made by the Corporate Applicant and

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**Interpretation:** Section 10 provides the mechanism for a corporate debtor to initiate CIRP when

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**Application:** The Adjudicating Authority applied Section 10 to the facts of the case, finding

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## Parties

- **Judges:** Harihar Prakash…; Ravikumar…; +1 more
- **Respondents:** Warasgaon Power…

## Timeline

- **2010-03-12 — Incorporation of…**: Warasgaon Power Supply Limited…
- **2018-08-30 — CIRP Initiatio…**: CIRP initiated against Lavasa…

## 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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