# In the matter of Hythro Power Corporation Ltd. (IB)-1064(PB)-2018

> NCLT judgment dated 2022-11-23. Citation: TCN-2022-NCLT-00366. The case involves a resolution plan for M/s. Hytro Power Corporation Ltd., the Corporate Debtor…

- **Court:** NCLT
- **Order date:** 23 Nov 2022
- **Citation:** TCN-2022-NCLT-00366
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/hythro-power-corporation-ltd-ib-1064pb-2018-1d3af559

## Summary

### Background

The case involves a resolution plan for M/s. Hytro Power Corporation Ltd., the Corporate Debtor (CD), which was initiated following CIRP proceedings under Section 9 of the IBC against Grid Infratech Power Corporation (Operational Creditor) due to debt and default. The Resolution Professional (RP) submitted a resolution plan approved by the Committee of Creditors (CoC). The Employees' Provident Fund Organisation (EPFO) filed a claim and objected to the resolution plan, arguing it did not adequately address their dues. The EPFO's claim was based on outstanding dues under the EPF & MP Act, 1952. The RP argued that the Corporate Debtor lacked funds to pay the EPFO and that the financial creditors' claim was substantial. The EPFO's objection was based on the resolution

…

## Facts

Grid Infratech Power Corporation initiated CIRP against Hytro Power Corporation Ltd. under Section 9 of IBC due to debt and default. An admission order was passed on 2019-06-12, and an Interim Resolution Professional was appointed. A public announcement was made on 2019-06-15 regarding the initiation of CIRP. The CoC was constituted on 2019-07-05 with seven members. The Employees Provident Fund Organisation (EPFO) also made a claim. The Resolution Professional (RP) submitted a resolution plan based on the 24th CoC meeting dated 2021-09-06. The EPFO objected to the resolution plan, arguing that it did not satisfy the requirements of Section 30(2)(e) of the Code. The EPFO claimed ₹162,19,53,945, including ₹40,57,14,551 under Section 7A of the EPF & MP Act, 1952, and

…

## Issues and analysis

### Issue 1: Whether the Resolution Plan complies with Section 30(2)(e) of the Insolvency and Bankruptcy Code, …

**Ratio:** Section 30(2)(e) of the IBC mandates that a resolution plan must not contravene any of

…

**Reasoning:** The NCLT reasoned that the liability of the Corporate Debtor to the EPFO had already been

…

**Interpretation:** The interpretation of Section 30(2)(e) requires that all statutory dues,

…

**Application:** In this case, the NCLT found that the resolution plan did not provide for the

…

## Parties

- **Judges:** Ramalingam…; AVINASH K.…
- **Appellants:** M/s. Grid…
- **Respondents:** M/s. Hytro Power…

## Timeline

- **2019-06-12 — Admission…**: Admission order passed initiating…
- **2019-06-15 — Public Annou…**: Public announcement made regarding the initiation of the Corporate Insolvency Resolution…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 36(4) — Liquidation estate](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-36)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/hythro-power-corporation-ltd-ib-1064pb-2018-1d3af559