nclt: NCLT notice to Madhya Pradesh discom over dues to Tata Power Renewable Energy Ltd

nclt: NCLT notice to Madhya Pradesh discom over dues to Tata Power Renewable Energy Ltd

The National Company Law Tribunal (NCLT) on Friday issued notice to the state-run power distribution company of Madhya Pradesh over non-payment of dues to Tata Power Renewable Energy Ltd.

The notice issued by NCLT Indore Bench at Ahmedabad is based on the company’s petition seeking initiation of insolvency proceedings on account of Rs 28 crore unpaid dues against Madhya Pradesh Power Management Co Ltd, a wholly-owned subsidiary of the state government.

Tata Power did not respond to media queries sent by ET.

Sources said Tata Power’s renewable arm had sent notices two months ago to the Madhya Pradesh distribution utility seeking release of dues and else face insolvency proceedings.

The dues are unpaid for nearly 15 months under the wind power purchase agreement signed between Tata Power Renewable Energy and Madhya Pradesh discom.

As per Section 9(1) of the Insolvency and Bankruptcy Code an operational creditor may file an application for a corporate resolution insolvency process before the National Company Law Tribunal (NCLT).

Tata Power Renewable Energy Ltd was represented in NCLT by Shri Venkatesh and Siddharth Joshi.

Government data showed the total overdue amount from dicsoms to power generating companies at the start of September was Rs 93,195 crore of which Rs 98,202 crore was overdue. Around Rs 15,000 crore is due to renewable energy companies. The data showed Rs 12,847 crore dues at month end.

There have been previous instances of power distribution companies dragging generating companies to NCLT too. For example, Andhra Pradesh Power Generation Company had dragged the distribution companies of Telangana to NCLT, seeking payment dues in July 2018.

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