State Bank of India (Financial Creditor) filed a Section 7 IBC petition against India Power Corporation Ltd (Corporate Debtor), which acted as a corporate guarantor for Meenakshi Energy Limited (Principal Borrower). The petition was initially dismissed but remanded by the Supreme Court for fresh consideration. IPCL challenged the enforceability of the Corporate Guarantee, alleging fraud, coercion, and non-compliance with WBERC regulations, and claimed the debt was discharged by invocation of pledged shares.
State Bank of India (Financial Creditor/SBI) filed a Petition under Section 7 of the IBC, 2016, seeking initiation of CIRP against M/s. India Power Corporation Limited (Corporate Debtor/IPCL).
IPCL acted as a Corporate Guarantor for financial facilities availed by M/s. Meenakshi Energy Limited (Principal Borrower/MEL).
The Petition was initially rejected by the Adjudicating Authority on 30.10.2023, but later remanded by the Supreme Court on 14.02.2025 for fresh consideration.
A Consortium of Lenders, including SBI and its Associate Banks, sanctioned and disbursed credit facilities to MEL under Phase I and Phase II Loan Agreements.
Associate Banks were amalgamated with SBI on 01.04.2017, vesting all rights in SBI.
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Common Loan Agreement…
Common Loan Agreement…
State Bank of India (Financial Creditor) filed a Section 7 IBC petition against India Power Corporation Ltd (Corporate Debtor), which acted as a corporate guarantor for Meenakshi Energy Limited (Principal Borrower). The petition was initially dismissed but remanded by the Supreme Court for fresh consideration. IPCL challenged the enforceability of the Corporate Guarantee, alleging fraud, coercion, and non-compliance with WBERC regulations, and claimed the debt was discharged by invocation of pledged shares.
State Bank of India (Financial Creditor/SBI) filed a Petition under Section 7 of the IBC, 2016, seeking initiation of CIRP against M/s. India Power Corporation Limited (Corporate Debtor/IPCL).
IPCL acted as a Corporate Guarantor for financial facilities availed by M/s. Meenakshi Energy Limited (Principal Borrower/MEL).
The Petition was initially rejected by the Adjudicating Authority on 30.10.2023, but later remanded by the Supreme Court on 14.02.2025 for fresh consideration.
A Consortium of Lenders, including SBI and its Associate Banks, sanctioned and disbursed credit facilities to MEL under Phase I and Phase II Loan Agreements.
Associate Banks were amalgamated with SBI on 01.04.2017, vesting all rights in SBI.
…Common Loan Agreement…
Common Loan Agreement…