# In the matter of Sinnar Termal Power Ltd.

> NCLT judgment dated 2025-10-14. Citation: TCN-2025-NCLT-01615. Axis Bank Limited filed an application under section 60(5) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 14 Oct 2025
- **Citation:** TCN-2025-NCLT-01615
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-new-delhi/sinnar-termal-power-ltd-f9d8ca78

## Summary

### Background

Axis Bank Limited filed an application under section 60(5) of the Insolvency and Bankruptcy Code, 2016, challenging the decision of the Committee of Creditors (CoC) in its 21st meeting to reduce the admitted claim and voting share of the Applicant.

## Facts

Axis Bank Limited, a scheduled bank, had extended credit facilities to Sinnar Thermal Power Ltd. (Corporate Debtor).

Axis Bank's claim was initially admitted for Rs. 1,291,87,54,896, with a voting share of 8.12%.

The admitted claim included a bank guarantee of Rs. 8,05,64,000 issued by Axis Bank on behalf of Sinnar Thermal Power Ltd. in favor of Mahanadi Coalfields Ltd. (MCL).

MCL invoked the Bank Guarantee on 27.10.2022, but its encashment was deferred due to the moratorium under Section 14 of the IBC.

The CoC, in its 21st meeting, passed a resolution reducing Axis Bank's admitted claim and voting share, disregarding the exposure under the Bank Guarantee.

…

## Issues and analysis

### Issue 1: Whether the Committee of Creditors (CoC) has the authority to reduce the admitted claim and voting …

**Ratio:** The CoC has the authority to make commercial decisions regarding the distribution of

…

**Reasoning:** The Adjudicating Authority determined that the CoC's decision was a commercial one

…

**Interpretation:** The CoC's commercial wisdom is paramount in determining the distribution of

…

**Application:** The CoC's decision to deduct the amount covered under the MCL Bank Guarantee

…

## Parties

- **Judges:** MANNI SANKARIAH…; ATUL CHAT…
- **Appellants:** Axis Bank L…
- **Respondents:** Sinnar Thermal…; Rahul J…; +2 more
- **Other parties:** REC Lim…; Bank of…; +5 more
- **Advocates:** Aayush Ag…; Prakash…; +5 more

## Timeline

- **2019-N/A — Initiation…**: CIRP initiated against Sinnar Thermal Power Ltd. vide order dated 19.09.2022 in CP(IB)…
- **2022-10-27 — Invocation of Bank…**: MCL invoked the Bank Guarantee issued by Axis…

## 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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