# In the matter of Nana Layja Power Company Limited IA-811(AHM)-2022 in CP (IB) 231(AHM)-2021

> NCLT judgment dated 2023-01-11. Citation: TCN-2023-NCLT-05104. The case involves an application (IA/811(AHM)2022) filed in CP(IB) 231 of 2021 under Section…

- **Court:** NCLT
- **Order date:** 11 Jan 2023
- **Citation:** TCN-2023-NCLT-05104
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/nana-layja-power-company-limited-ia-811ahm-2022-in-cp-ib-231ahm-2021-c6ddb1ac

## Summary

### Background

The case involves an application (IA/811(AHM)2022) filed in CP(IB) 231 of 2021 under Section 60(5)(c) of the Insolvency and Bankruptcy Code (IBC), 2016, read with Rule 11 of the NCLT Rules, 2016. The applicant, Ms. Prajakta Menezes, the Interim Resolution Professional (IRP) of Nana Layja Power Company Limited, sought an order for liquidation to initiate the Liquidation Proceeding against the Corporate Applicant. The Corporate Applicant was incorporated in November 2010 to set up a power plant and desalination plant in Kutch, Gujarat, but it never commenced business due to lack of clearances. The Corporate Applicant is a wholly-owned subsidiary of IL&FS Energy Development Company Limited (IEDCL), which is a subsidiary of IL&FS. CIRP was initiated on 20.06.2022.

## Facts

Nana Layja Power Company Limited (the 'Corporate Applicant') was incorporated on November 19, 2010, with the objective of establishing a 400 MW coal-based thermal power plant, a 2000 MW gas-based combined cycle power project, a 60 million liters per day desalination plant, and a 2.5 MTP Liquefied Natural Gas Terminal in Kutch, Gujarat. However, the Corporate Applicant never commenced business operations due to a lack of necessary clearances. The Corporate Applicant is a wholly-owned subsidiary of IL&FS Energy Development Company Limited ('IEDCL'), which in turn is a subsidiary of IL&FS. The Board of Directors of the Corporate Applicant approved the filing of an application for the initiation of Corporate Insolvency Resolution Process (CIRP) under Section 10 of

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Applicant should be allowed given the …

**Ratio:** Section 33(1) of the IBC allows for liquidation when a resolution plan is not approved or

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**Reasoning:** The Adjudicating Authority reasoned that since no claim of the Operational Creditor could

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**Interpretation:** The interpretation of Section 33(1) and related provisions suggests that the

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**Application:** In this case, the Corporate Applicant had no admitted claims from Operational

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## Parties

- **Judges:** Madan B.…; KAUSHALENDRA…
- **Appellants:** Prajakta M…
- **Respondents:** Nana Layja Power…
- **Advocates:** Nipun Si…; Pragati T…

## Timeline

- **2010-11-19 — Incorporation of…**: Nana Layja Power Company…
- **2020-12-01 — Approval for CIRP…**: Board of Directors accorded their approval for filing an application for initiation of…

## 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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