# In the matter of Simhapuri Energy Limited I.A. No. 281-2023 in C.P. (IB) No. 13-7-HDB-2020

> NCLT judgment dated 2023-03-20. Citation: TCN-2023-NCLT-04136. The case pertains to the liquidation of Simhapuri Energy Limited (SEL), the Corporate Debtor.…

- **Court:** NCLT
- **Order date:** 20 Mar 2023
- **Citation:** TCN-2023-NCLT-04136
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/simhapuri-energy-limited-ia-no-281-2023-in-cp-ib-no-13-7-hdb-2020-032e7fc1

## Summary

### Background

The case pertains to the liquidation of Simhapuri Energy Limited (SEL), the Corporate Debtor. The liquidation process was initiated after the Resolution Professional (RP) failed to find a viable resolution plan. The Tribunal ordered liquidation on 06.10.2021. The Liquidator then initiated an e-auction process for the sale of the Corporate Debtor as a going concern. Jindal Power Limited (JPL) emerged as the successful bidder with a financial proposal of INR 335 crores. A Letter of Intent (LOI) was issued to JPL, which they accepted. However, the process faced delays due to an interim stay granted by the High Court of Telangana based on a petition filed by one of the shareholders, Madhucon Infra Limited. The High Court later set aside the stay and ordered the

…

## Facts

1. Simhapuri Energy Limited (SEL) was undergoing liquidation after failing to find a resolution plan during the CIRP.
2. The Tribunal ordered liquidation on 06.10.2021.
3. The Liquidator initiated an e-auction for the sale of the Corporate Debtor as a going concern.
4. Jindal Power Limited (JPL) submitted a bid of INR 335 crores and was declared the successful bidder on 06.03.2022.
5. The Liquidator issued a Letter of Intent (LOI) to JPL on 07.03.2022, which JPL accepted on 08.03.2022.
6. JPL faced delays in depositing the balance sale consideration due to an interim stay granted by the High Court of Telangana on 01.04.2022, based on a petition by Madhucon Infra Limited, a shareholder.
7. The Liquidator challenged the High Court's stay order, and the High Court set aside the

…

## Issues and analysis

### Issue 1: Whether the liquidation process of the …

**Ratio:** Regulation 45 (3) (a) of the Insolvency and Bankruptcy Board of India (Liquidation

…

**Reasoning:** The Tribunal noted that the Corporate Debtor was sold as a going concern to Jindal Power

…

**Interpretation:** Regulation 45(3)(a) provides a clear pathway for closing liquidation

…

**Application:** Since Simhapuri Energy Limited was sold as a going concern to Jindal Power

…

## Parties

- **Judges:** Venkata Ramakrishn…; SH. CHARAN…
- **Appellants:** G. V. NARASIMHA…
- **Respondents:** Simhapuri Energy…
- **Advocates:** Shraddha…; Mr.V.V.S.…

## Timeline

- **2020-06-26 — Petition Ad…**: Tribunal admitted the petition filed under…
- **2021-10-06 — Liquidation…**: Tribunal ordered liquidation…

## 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/simhapuri-energy-limited-ia-no-281-2023-in-cp-ib-no-13-7-hdb-2020-032e7fc1