# In the matter of Sudalagunta Sugars Limited CP (IB)-130-9-AMR-2022

> NCLT judgment dated 2023-04-10. Citation: TCN-2023-NCLT-03874. The Operational Creditor filed a petition under Section 9 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 10 Apr 2023
- **Citation:** TCN-2023-NCLT-03874
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sudalagunta-sugars-limited-cp-ib-130-9-amr-2022-5b286dae

## Summary

### Background

The Operational Creditor filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor for a default in discharging a debt of Rs. 29,42,38,402/-.

## Facts

M/s. Southern Power Distribution Company of A.P. Limited, the Operational Creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against M/s. Sudalagunta Sugars Limited, the Corporate Debtor. The petition sought to initiate Corporate Insolvency Resolution Process (CIRP) due to the Corporate Debtor's default in paying a debt of Rs. 29,42,38,402/-.

## Issues and analysis

### Issue 1: Whether the Corporate Debtor committed a default in discharging the debt owed to the Operational …

**Ratio:** The Supreme Court's judgment dated November 29, 2019, restored the APERC's order,

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**Reasoning:** The debt pertained to wheeling charges and cross-subsidy charges fixed by the Andhra

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**Interpretation:** The Supreme Court's decision clarified that the plea of promissory estoppel was

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**Application:** Following the Supreme Court's order, the Operational Creditor issued multiple

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## Parties

- **Judges:** TELAPROLU…
- **Appellants:** Southern Power…; M/s Southern…
- **Respondents:** Sudalagunta…; M/s Sudalagunta…
- **Advocates:** For Operational…; Sarvani Desiraju,…

## Timeline

- **March 24, 2002 — APERC Or…**: Andhra Pradesh Electricity Regulatory Commission (APERC) fixed wheeling charges and…
- **April 18, 2003 — High Court…**: The High Court allowed an appeal and set aside the APERC's order regarding wheeling…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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