# In the matter of Meenakshi Energy Ltd. IA No.37-2023 in CP(IB) No. 184-7-HDB-2019

> NCLT judgment dated 2023-01-23. Citation: TCN-2023-NCLT-04944. The case involves an application filed by Consortium of Prudent ARC Ltd. against the Resolution…

- **Court:** NCLT
- **Order date:** 23 Jan 2023
- **Citation:** TCN-2023-NCLT-04944
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/meenakshi-energy-ltd-ia-no37-2023-in-cpib-no-184-7-hdb-2019-6c982a92

## Summary

### Background

The case involves an application filed by Consortium of Prudent ARC Ltd. against the Resolution Professional of Meenakshi Energy Ltd. and others, seeking to restrain the respondents from proceeding with the Challenge Process and to direct Respondent Nos. 1 & 2 to accept the Resolution Plan submitted on 28.10.2022, and to restrain Respondent No. 1 from considering all Resolution Plans submitted after 28.10.2022. The corporate insolvency resolution process (CIRP) was initiated against Meenakshi Energy Ltd. due to its failure to pay its financial debt, with State Bank of India (SBI) filing an application under Section 7 of the IBC. The CIRP faced multiple extensions due to COVID-19 and other factors, leading to appeals and further complications in the resolution

…

## Facts

The Consortium of Prudent ARC Ltd. filed an application against the Resolution Professional (RP) of Meenakshi Energy Ltd., seeking to restrain the challenge process and enforce acceptance of their resolution plan submitted on 28.10.2022. Meenakshi Energy Ltd. underwent CIRP due to debt default, initiated by SBI under Section 7 of IBC. The CIRP faced extensions due to COVID-19, leading to appeals. The applicant's resolution plan was revised and challenged by the CoC and other applicants. A key Power Purchase Agreement (PPA) with Bangladesh Power Development Board (BPDB) was terminated, impacting the resolution. The CoC decided on a challenge process, prompting the applicant's restraining application. The applicant argues that Regulation 39(1A) of IBBI regulations limits

…

## Issues and analysis

### Issue 1: Whether the word “Or” in Regulation 39 (1A) would mean as an alternative or can the word “or” be …

**Ratio:** Regulation 39(1A) of the IBBI Regulations provides a discretion to the Resolution

…

**Reasoning:** The court reasoned that the language of Regulation 39(1A) provides a discretion to the

…

**Interpretation:** The interpretation of Regulation 39(1A) is crucial in determining the extent of

…

**Application:** In this case, the court applied the ratio by concluding that Regulation 39(1A)

…

## Parties

- **Judges:** TELAPROLU…; SH. CHARAN…
- **Appellants:** Consortium of…
- **Respondents:** Meenakshi Energy…; Ravi Sankar…

## Timeline

- **2019-11-07 — CIRP Commen…**: Corporate Insolvency Resolution Process (CIRP)…
- **2022-05-05 — Ministry of Power…**: Ministry of Power issued a direction u/s 11 of the Electricity Act, 2003 to all imported…

## 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)

---

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/meenakshi-energy-ltd-ia-no37-2023-in-cpib-no-184-7-hdb-2019-6c982a92