# In the matter of KSK Mahanadi Power Company Ltd.

> NCLT judgment dated 2022-06-07. Citation: TCN-2022-NCLT-02365. The case involves a petition to defer the submission of a resolution plan and the CIRP process…

- **Court:** NCLT
- **Order date:** 7 Jun 2022
- **Citation:** TCN-2022-NCLT-02365
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ksk-mahanadi-power-company-ltd-a22ee079

## Summary

### Background

The case involves a petition to defer the submission of a resolution plan and the CIRP process for KSK Mahanadi Power Company Ltd. The applicant seeks to stay further CIRP proceedings, including the receipt of a resolution plan, pending the disposal of IA(IBC)/374/2022. KSK Mahanadi Power Company Ltd. holds a 49% share in KSK Water Infrastructure Private Ltd. and Raigarh Champa Rail Pvt. Ltd., all of which are under CIRP. An earlier attempt to consolidate the resolution process of these three companies was made to maximize asset value. A creditor (Punjab National Bank) had also applied for consolidation of CIRP of R2 with R1, but this was rejected by the Adjudicating Authority and is now under appeal before the NCLAT.

## Facts

KSK Mahanadi Power Company Ltd. is undergoing CIRP. The Resolution Professional is inviting resolution applicants. KSK Mahanadi Power Company Ltd. holds 49% shares in KSK Water Infrastructure Private Ltd. and Raigarh Champa Rail Pvt. Ltd., which are also under CIRP. An application for consolidation of CIRP of R2 with R1 was rejected by the Adjudicating Authority and is under appeal before NCLAT. Axis Bank Ltd. filed IA No. 1161 of 2020 seeking consolidation of CIRPs of the three Corporate Debtors. The applicant seeks a stay on further CIRP proceedings, including the receipt of a resolution plan, pending the disposal of IA(IBC)/374/2022. Punjab National Bank also made an application for consolidation of CIRP of R2 with R1.

## Issues and analysis

### Issue 1: Whether the Resolution Process should be deferred pending the outcome of the appeal before the …

**Ratio:** Consolidation of CIRPs of related corporate debtors is generally advisable to maximize

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**Reasoning:** The court reasoned that a successful resolution applicant would be able to address the

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**Interpretation:** The interpretation is that consolidation of CIRPs is a beneficial approach when

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**Application:** Given that an appeal regarding the consolidation is pending before the NCLAT,

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## Parties

- **Judges:** Bhaskara Pantula…; BINOD KUMAR…
- **Appellants:** Power Finance…
- **Respondents:** KSK Mahanadi…

## Timeline

- **2019-01-01 — CP (IB)…**: CP (IB) No.492/7/HDB/201…
- **2020-01-01 — IA Filed by A…**: Axis Bank Ltd. filed IA No. 1161 of 2020 seeking the consolidation of CIRPs of the three…

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