The case involves a dispute between Gujarat Urja Vikas Nigam Limited (GUVNL) and Astonfield Solar (Gujarat) Private Limited regarding a Power Purchase Agreement (PPA). GUVNL sought to terminate the PPA after Astonfield Solar entered Corporate Insolvency Resolution Process (CIRP). The National Company Law Tribunal (NCLT) initially stayed the termination, a decision upheld by the National Company Law Appellate Tribunal (NCLAT). GUVNL appealed, arguing the NCLT/NCLAT lacked jurisdiction and the termination was valid under the PPA's terms.
In 2009, the Government of Gujarat announced a Solar Power Policy. Subsequently, GUVNL and Astonfield Solar entered into a PPA in 2010, amended in 2011, for a 25-year term. Astonfield Solar commissioned a solar power plant. In 2015 and 2017, floods damaged the plant, causing financial stress. In 2018, Astonfield Solar entered CIRP. GUVNL issued default notices in 2019, citing Astonfield Solar's CIRP as an event of default under the PPA. The Resolution Professional (RP) contested the termination. The NCLT stayed the termination, emphasizing the PPA's importance to Astonfield Solar's survival. The NCLAT upheld this decision. GUVNL appealed to the Supreme Court. The key fact is that GUVNL sought to terminate the PPA solely because Astonfield Solar entered CIRP, triggering
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The Government of Gujarat notifies the Solar…
The Government of Gujarat allocated a…
The case involves a dispute between Gujarat Urja Vikas Nigam Limited (GUVNL) and Astonfield Solar (Gujarat) Private Limited regarding a Power Purchase Agreement (PPA). GUVNL sought to terminate the PPA after Astonfield Solar entered Corporate Insolvency Resolution Process (CIRP). The National Company Law Tribunal (NCLT) initially stayed the termination, a decision upheld by the National Company Law Appellate Tribunal (NCLAT). GUVNL appealed, arguing the NCLT/NCLAT lacked jurisdiction and the termination was valid under the PPA's terms.
In 2009, the Government of Gujarat announced a Solar Power Policy. Subsequently, GUVNL and Astonfield Solar entered into a PPA in 2010, amended in 2011, for a 25-year term. Astonfield Solar commissioned a solar power plant. In 2015 and 2017, floods damaged the plant, causing financial stress. In 2018, Astonfield Solar entered CIRP. GUVNL issued default notices in 2019, citing Astonfield Solar's CIRP as an event of default under the PPA. The Resolution Professional (RP) contested the termination. The NCLT stayed the termination, emphasizing the PPA's importance to Astonfield Solar's survival. The NCLAT upheld this decision. GUVNL appealed to the Supreme Court. The key fact is that GUVNL sought to terminate the PPA solely because Astonfield Solar entered CIRP, triggering
…The Government of Gujarat notifies the Solar…
The Government of Gujarat allocated a…