The case involves a dispute over the appropriation of a cash deposit of Rs.108.44 crores made by KSK Mahanadi Power Company Limited (KMPCL) with Central Transmission Utility of India Limited (the appellant) prior to the commencement of the Corporate Insolvency Resolution Process (CIRP). The appellant appropriated the deposit against both pre-CIRP and post-CIRP dues.
KMPCL entered into a Bulk Power Transmission Agreement (BPTA) with PGCIL (later substituted by the appellant) for long-term access to the Inter-State Transmission System.
KMPCL made a cash deposit of Rs.108.44 crores with the appellant, intended as a Payment Security Mechanism (PSM) in lieu of a Letter of Credit (LoC).
CIRP was initiated against KMPCL on 03.10.2019.
The appellant appropriated the deposit of Rs.108.44 crores against both pre-CIRP and post-CIRP dues.
The RP challenged the appropriation of pre-CIRP dues, arguing it violated the moratorium under Section 14 of the IBC.
The NCLT and NCLAT ruled against the appellant, directing adjustment towards post-CIRP dues.
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PGCIL issued a…
CIRP was ini…
The case involves a dispute over the appropriation of a cash deposit of Rs.108.44 crores made by KSK Mahanadi Power Company Limited (KMPCL) with Central Transmission Utility of India Limited (the appellant) prior to the commencement of the Corporate Insolvency Resolution Process (CIRP). The appellant appropriated the deposit against both pre-CIRP and post-CIRP dues.
KMPCL entered into a Bulk Power Transmission Agreement (BPTA) with PGCIL (later substituted by the appellant) for long-term access to the Inter-State Transmission System.
KMPCL made a cash deposit of Rs.108.44 crores with the appellant, intended as a Payment Security Mechanism (PSM) in lieu of a Letter of Credit (LoC).
CIRP was initiated against KMPCL on 03.10.2019.
The appellant appropriated the deposit of Rs.108.44 crores against both pre-CIRP and post-CIRP dues.
The RP challenged the appropriation of pre-CIRP dues, arguing it violated the moratorium under Section 14 of the IBC.
The NCLT and NCLAT ruled against the appellant, directing adjustment towards post-CIRP dues.
…PGCIL issued a…
CIRP was ini…