# In the matter of Lanco Vidarbha Thermal Power Limited IA (IBC)-793-2021 in CP (IB) No. 529-7-HDB-2018

> NCLT judgment dated 2022-02-07. Citation: TCN-2022-NCLT-04228. The case involves two applications, IA 793/2021 and IA 571/2021, both filed in CP(IB)…

- **Court:** NCLT
- **Order date:** 7 Feb 2022
- **Citation:** TCN-2022-NCLT-04228
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/lanco-vidarbha-thermal-power-limited-ia-ibc-793-2021-in-cp-ib-no-529-7-hdb-2018-c44248e3

## Summary

### Background

The case involves two applications, IA 793/2021 and IA 571/2021, both filed in CP(IB) No.529/7/HDB/2018. IA 793/2021 was filed by The Board of Trustees of the Port of Mumbai challenging the rejection of their claim by the liquidator of Lanco Vidarbha Thermal Power Ltd. IA 571/2021 was filed by Maharashtra State Electricity Distribution Company Limited, challenging the rejection of their claim by the liquidator. Both applications concern claims against Lanco Vidarbha Thermal Power Ltd, which is undergoing liquidation. The liquidator rejected the claims of both applicants, leading to the current applications before the NCLT.

## Facts

The Board of Trustees of the Port of Mumbai filed IA 793/2021 challenging the rejection of their claim by the liquidator of Lanco Vidarbha Thermal Power Ltd. The claim was for Rs. 300,11,59,000, comprising deficits from sale accounts of materials lying at docks and interest. The liquidator rejected the claim due to a 129-day delay in submission, with the last date being 30.07.2021. The applicant argued that COVID-19 restrictions caused the delay and that they had previously intimated the claim to the Resolution Professional. Maharashtra State Electricity Distribution Company Limited filed IA 571/2021, challenging the rejection of their claim for Rs.752.28 crores by the liquidator. The claim stemmed from a Power Purchase Agreement (PPA) with Lanco Vidarbha Thermal Power

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## Issues and analysis

### Issue 1: Whether the rejection of the claim by the …

**Ratio:** The liquidator must consider the reasons for the delay in submitting a claim, especially

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**Reasoning:** The NCLT reasoned that the COVID-19 pandemic and associated restrictions could have

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**Interpretation:** This highlights the importance of considering extenuating circumstances, such

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**Application:** The NCLT applied this principle by setting aside the liquidator's orders and

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## Parties

- **Judges:** Venkata Ramakrishn…; SH. VEERA BRAHMA…
- **Appellants:** The Board of…
- **Respondents:** Lanco Vidarbha…; Mr.Vijay Kumar…

## Timeline

- **2008-09-25 — Power Purchase…**: Power Purchase Agreement (PPA) executed between Maharashtra State Electricity…
- **2013-03-12 — Encashment of Bank…**: Maharashtra State Electricity Distribution Company Limited proceeded to encash the bank…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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