# In the matter of NOVUS GREEN ENERGY SYSTEMS LIMITED

> NCLT judgment dated 2026-02-25. Citation: TCN-2026-NCLT-00179. The Applicant/Financial Creditor, Indian Renewable Energy Development Agency Limited (IREDA),…

- **Court:** NCLT
- **Order date:** 25 Feb 2026
- **Citation:** TCN-2026-NCLT-00179
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-hyderabad/novus-green-energy-systems-limited-6dd7ddc7

## Summary

### Background

The Applicant/Financial Creditor, Indian Renewable Energy Development Agency Limited (IREDA), filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against the Respondent/Corporate Debtor, Novus Green Energy Systems Limited, due to default in repayment of financial debt.

## Facts

Indian Renewable Energy Development Agency Limited (IREDA) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016.

The application sought initiation of Corporate Insolvency Resolution Process (CIRP) against Novus Green Energy Systems Limited.

The default amount was Rs. 34,68,49,261/- as on 15.09.2025.

IREDA had sanctioned a Short-Term Loan Facility of Rs. 36,00,00,000/- to Novus Green Energy Systems Limited.

The loan was for the execution of an EPC Contract of 15 MW Floating Solar PV Power Plant project awarded by Singareni Collieries Company Limited.

A Short-Term Loan Agreement was executed on 27.03.2021.

The Corporate Debtor agreed to pay interest @ 11.40% per annum.

Liquidated damages @ 2% per annum were chargeable in the event of default.

…

## Issues and analysis

### Issue 1: Whether the debt qualifies as a 'financial debt' under Section 5(8) of the Insolvency and …

**Ratio:** The Adjudicating Authority found that the debt qualifies as a 'financial debt' under

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**Reasoning:** Based on the material available on record, the Adjudicating Authority determined that the

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**Interpretation:** Section 5(8) defines 'financial debt' as a debt along with interest, if any,

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**Application:** The loan disbursed by IREDA to Novus Green Energy Systems Limited, along with

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## Parties

- **Judges:** Rajeev Bh…; Sanjay…
- **Appellants:** Indian Renewable…
- **Respondents:** M/s Novus Green…
- **Other parties:** Madhusudhan Rao…
- **Advocates:** Amir Ba…; Anirban Aly…

## Timeline

- **19.03.2021 — Sanction Lett…**: Date of the Sanction Letter for…
- **27.03.2021 — Loan Agreeme…**: Date of the Short-Term Loan Agreement between…

## 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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