# Gujarat Urja Vikas Nigam Limited Vs. Amit Gupta & Ors., Civil Appeal No. 9241 of 2019

> SC judgment dated 2021-03-08. Citation: TCN-2021-SC-00067. The case involves a dispute between Gujarat Urja Vikas Nigam Limited (GUVNL) and Astonfield Solar…

- **Court:** SC
- **Order date:** 8 Mar 2021
- **Citation:** TCN-2021-SC-00067
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/gujarat-urja-vikas-nigam-limited-vs-amit-gupta-ors-civil-appeal-no-9241-of-2019-b77a8b3c

## Summary

### Background

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.

## Facts

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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## Issues and analysis

### Issue 1: Whether the NCLT/NCLAT can exercise jurisdiction under the IBC over disputes arising from contracts …

**Ratio:** The NCLT has jurisdiction to adjudicate disputes that arise solely from or relate to the

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**Reasoning:** The Supreme Court analyzed Section 60(5)(c) of the IBC, emphasizing that the NCLT's

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**Interpretation:** Section 60(5)(c) should be interpreted in light of the IBC's objectives,

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**Application:** In this case, GUVNL's termination of the PPA was directly linked to Astonfield

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## Parties

- **Judges:** Dr Dhananjaya Y…; M.R.…
- **Appellants:** Gujarat Urja…
- **Respondents:** Astonfield Solar…; Amit Gupta…
- **Other parties:** 7th Edition…; Power Purchase…; +4 more

## Timeline

- **2009-01-06 — Government of Gujarat Notifies Solar Power…**: The Government of Gujarat notifies the Solar Power Policy, 2009 for development of Solar…
- **2009-08-01 — Government of Gujarat…**: The Government of Gujarat allocated a 25-megawatt capacity to the Corporate Debtor for…

## 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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