# In the matter of Bhatia Coke and Energy Limited

> NCLT judgment dated 2024-02-02. Citation: TCN-2024-NCLT-02784. M/s. Dongwoo Surface Tech (India) Private Limited filed an application under Section 60(5) of…

- **Court:** NCLT
- **Order date:** 2 Feb 2024
- **Citation:** TCN-2024-NCLT-02784
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/bhatia-coke-and-energy-limited-80399c69

## Summary

### Background

M/s. Dongwoo Surface Tech (India) Private Limited filed an application under Section 60(5) of the Insolvency & Bankruptcy Code, 2016, seeking to recover Rs. 32,50,000/- from Bhatia Coke and Energy Limited, the Corporate Debtor. Dongwoo had entered into a Letter of Intent (LOI) and a Power Purchase Agreement (PPA) with Bhatia Coke for the purchase of power. Dongwoo paid Rs. 82,50,000/- towards share capital allotment. However, no Share Purchase Agreement was entered, and the Corporate Debtor was admitted into the Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor failed to supply power, and the Resolution Professional later cancelled the PPA, refunding Rs. 50,00,000/-. Dongwoo claimed the remaining Rs. 32,50,000/- as a CIRP cost.

## Facts

M/s. Dongwoo Surface Tech (India) Private Limited (Applicant) entered into a Letter of Intent (LOI) and a Power Purchase Agreement (PPA) with M/s. Bhatia Coke and Energy Limited (Corporate Debtor) on March 11, 2019, for the purchase of 1.5 MW of power. Pursuant to the LOI and PPA, the Applicant paid Rs. 82,50,000/- to the Corporate Debtor towards share capital allotment on March 8, 2019, intending to enter into a Group Captive Model. However, no Share Purchase Agreement was executed. The Corporate Debtor was admitted into the Corporate Insolvency Resolution Process (CIRP) on May 22, 2019. The Corporate Debtor failed to supply power as per the PPA. On June 20, 2019, the Applicant sent a notice of default to the Corporate Debtor. On June 21, 2019, 9141 shares of Vel

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## Issues and analysis

### Issue 1: Whether the Applicant is entitled to claim the remaining amount of Rs. 32,50,000/- from the …

**Ratio:** Once a resolution plan is duly approved by the Adjudicating Authority under Section 31(1)

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**Reasoning:** The Adjudicating Authority relied on the Supreme Court's decision in Ghanashyam Mishra

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**Interpretation:** The Supreme Court's ruling in Ghanashyam Mishra case provides a clear

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**Application:** In this case, the Applicant's claim for the remaining Rs. 32,50,000/- was not

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## Parties

- **Judges:** JYOTI KUMAR…; RAVICHANDRAN…
- **Appellants:** M/S. DONGWOO…
- **Respondents:** Bhatia Coke &…; S. DEHAL…

## Timeline

- **2019-03-08 — NEFT Pay…**: NEFT Payment of Rs. 82,50,000/- to the…
- **2019-03-11 — Letter of…**: Letter of Intent between the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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