Indrajit Power Goes Under Insolvency Resolution; IRP Seeks Claim Details

The development comes after NCLT admits financial creditor Yes Bank’s insolvency petition against the power producer
Indrajit Power Goes Under Insolvency Resolution; IRP Seeks Claim Details
Image Source: Indrajit Power

India’s National Company Law Tribunal (NCLT) recently admitted Indrajit Power Private Ltd. for insolvency resolution and its interim resolution professional (IRP) is seeking claim details from the company’s creditors.

The creditors must submit their claims with proof by 16 February, IRP Bhuvan Madan said in a public announcement. The e-mail to be used for correspondence with the IRP is cirp.ippl1@gmail.com, he added.

The power producer, which currently has an 85-megwatt coal-based thermal power plant in the western Indian state of Maharashtra, is undergoing the corporate insolvency resolution process (CIRP) after the National Company Law Tribunal (NCLT) admitted a petition against the company on 1 February.

The insolvency petition was filed by Indrajit Power’s financial creditor Yes Bank Ltd. on 31 August 2023, claiming an amount of over 331 crore rupees ($40 million) as on 22 May 2023, the NCLT order showed.

“The application made by the financial creditor is complete in all respects as required by law,” the NCLT said in its order. “It clearly shows that the corporate debtor is in default of a debt due and payable, and the default is in excess of minimum amount stipulated under section 4(1) of the IBC (Insolvency and Bankruptcy Code).”

The NCLT’s Mumbai bench, comprising Judicial Member Kishore Vemulapalli and Technical Member Anu Jagmohan Singh, appointed Madan as the company’s IRP. The bench also directed him to take necessary steps mandated in the bankruptcy law for the insolvency resolution.

The company’s CIRP is likely to be completed by 31 July, according to the public announcement.

Note: $1 = 83.0124 Indian rupees

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