Power Trust, a promoter of Hiranmaye Energy Ltd., appealed against an NCLAT order dated 25.01.2024, which upheld an NCLT order dated 02.01.2024 admitting a Section 7 IBC application filed by REC Ltd. against Hiranmaye Energy Ltd. The Corporate Debtor had defaulted on a loan, and multiple restructuring proposals failed due to unfulfilled pre-implementation conditions. The Appellant challenged the admission of CIRP, arguing a Section 10A bar, novation of the original loan agreement, and the Adjudicating Authority's failure to assess the Corporate Debtor's viability.
A common loan agreement dated 19.06.2013 was entered into between Hiranmaye Energy Ltd. (Corporate Debtor) and REC Ltd. (2nd Respondent) for a term loan of Rs. 1859 crore to set up a thermal power plant at Haldia, West Bengal.
Due to cost overruns, on 30.10.2015, the Corporate Debtor availed an additional term loan facility of Rs. 446.97 crore.
The Corporate Debtor entered into a power purchase agreement with the West Bengal State Electricity Distribution Company Ltd. (WBSEDCL).
On 30.06.2018, REC Ltd. classified the accounts of the Corporate Debtor as non-performing assets due to alleged default in making due payments.
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A common loan agreement was entered into…
The Corporate Debtor availed an additional term…
Power Trust, a promoter of Hiranmaye Energy Ltd., appealed against an NCLAT order dated 25.01.2024, which upheld an NCLT order dated 02.01.2024 admitting a Section 7 IBC application filed by REC Ltd. against Hiranmaye Energy Ltd. The Corporate Debtor had defaulted on a loan, and multiple restructuring proposals failed due to unfulfilled pre-implementation conditions. The Appellant challenged the admission of CIRP, arguing a Section 10A bar, novation of the original loan agreement, and the Adjudicating Authority's failure to assess the Corporate Debtor's viability.
A common loan agreement dated 19.06.2013 was entered into between Hiranmaye Energy Ltd. (Corporate Debtor) and REC Ltd. (2nd Respondent) for a term loan of Rs. 1859 crore to set up a thermal power plant at Haldia, West Bengal.
Due to cost overruns, on 30.10.2015, the Corporate Debtor availed an additional term loan facility of Rs. 446.97 crore.
The Corporate Debtor entered into a power purchase agreement with the West Bengal State Electricity Distribution Company Ltd. (WBSEDCL).
On 30.06.2018, REC Ltd. classified the accounts of the Corporate Debtor as non-performing assets due to alleged default in making due payments.
…A common loan agreement was entered into…
The Corporate Debtor availed an additional term…