# In the matter of Lanco Kondapalli Power Limited

> NCLT judgment dated 2023-12-22. Citation: TCN-2023-NCLT-00020. The case involves an application filed by MCM Pacific Private Limited, the Applicant, seeking…

- **Court:** NCLT
- **Order date:** 22 Dec 2023
- **Citation:** TCN-2023-NCLT-00020
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/lanco-kondapalli-power-limited-90e87338

## Summary

### Background

The case involves an application filed by MCM Pacific Private Limited, the Applicant, seeking directions from the National Company Law Tribunal (NCLT) to prevent the Respondent/Resolution Professional from cancelling the Applicant's bid for assets of Lanco Kondapalli Power Limited, the Corporate Debtor, until issues regarding GST, interest, and reservation costs are resolved. The Applicant had already deposited Rs. 136 Crores, the bid amount, for asset parcel No. 4 in category B of the process document. CIRP of the Corporate Debtor was initiated on 23.04.2019, followed by a liquidation order on 16.04.2021, and appointment of a liquidator. The Applicant's bid of Rs. 136.11 Crores was accepted, and they were declared the successful bidder. A letter of intent was issued

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## Facts

MCM Pacific Private Limited (Applicant) sought directions from NCLT to prevent the cancellation of their bid for assets of Lanco Kondapalli Power Limited (Corporate Debtor). The Applicant had deposited Rs. 136 Crores as bid amount. CIRP of the Corporate Debtor was initiated on 23.04.2019, followed by a liquidation order on 16.04.2021. The Applicant's bid of Rs. 136.11 Crores was accepted. A letter of intent was issued on 21.06.2022, and the Applicant paid Rs. 15.44 Crores. The sale was cancelled on 20.09.2022 due to non-payment of the balance amount, and the deposited amount was forfeited. The Applicant sought extensions of time, which were initially dismissed. The SCC offered terms, including securing court orders to set aside the forfeiture and directions for balance

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## Issues and analysis

### Issue 1: Whether the Applicant's bid for the Corporate Debtor's assets should be cancelled pending …

**Ratio:** The principle is that the court has the power to issue directions to ensure the smooth

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**Reasoning:** The court considered the various applications filed by the Applicant seeking extensions

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**Interpretation:** This involves interpreting the scope of the court's powers under the Insolvency

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**Application:** The court applied this principle by allowing the Applicant to furnish a bank

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## Parties

- **Judges:** Rajeev Bh…; Sanjay…
- **Appellants:** MCM Pacific…
- **Respondents:** Lanco Kondapalli…; Pankaj Dhanuka,…

## Timeline

- **2019-04-23 — CIRP Init…**: CIRP of Corporate Debtor was…
- **2021-04-16 — Liquidation…**: An order for liquidation was…

## 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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