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The debt ridden company IL&FS moved an application before the National Company Law Appellate Tribunal (NCLAT) seeking an order against Gujarat Urja Vikas Nigam (GUVNL) for payment of dues amounting to almost Rupees 140 Crore.
IL&FS alleged a breach by Gujarat Urja Vikas Nigam (GUVNL) of a 2018 order passed by the National Company Law Appellate Tribunal (NCLAT) that stayed all legal proceedings against IL&FS.
The National Company Law Appellate Tribunal (NCLAT) passed an interim order on October 15, 2018 granting a moratorium on all creditor actions against IL&FS Limited (IL&FS) as well as all of its group companies.
The comprehensive moratorium prohibits initiation or continuation of legal proceedings, enforcement of security over assets of IL&FS and its group companies in addition to restricting creditors from accelerating or making demands for payment of their credit facilities, debt securities, premature withdrawal of deposits or appropriating cash balance of IL&FS or its group companies, though it will not extend to specific High Court proceedings under Article 226 of the Constitution of India or matters which fall within the jurisdiction of the Supreme Court of India.
The Company IL&FS is currently undergoing a massive serious of debt. The debt resolution plan is under constitution by Justice DK Jain following a order of the National Company Law Appellate Tribunal in February 2019, which held that
Taking into consideration the stand taken by ‘Union of India’ and ‘IL&FS’, we allow the Board of Directors of ‘IL&FS’ and to permit all ‘Green entities’ including the entities which may be declared ‘Green’ out of the 100 entities to service their debt obligations as per scheduled repayment, which should be within the ‘Resolution Framework’ as described in the affidavit dated 25th January, 2019 and subject to the supervision of the Hon’ble Justice (Retd.) D. K. Jain.
The Company IL&FS had filed a petition before the Gujarat Electricity Regulatory Commission seeking payment of dues by Gujarat Urja Vikas Nigam (GUVNL) but was not granted relied by the Gujarat Electricity Regulatory Commission (GERC), The Gujarat Electricity Regulatory Commission held the following
The Petitioner which is one of the group companies of IL&FS having common shareholding is at presently subject to the proceeding under the Insolvency and Bankruptcy Code, 2016 and the Company Appeal No. 346 and 347 of 2018 pending before the National Company Law Appellate Tribunal, Delhi and is also subject to resolution proceeding. The Respondent and its administered employees PF Trust are also one of the party under the recovery proceedings.
Hence, under the provisions of IBC, it is not proper for the Commission to entertain the present petition under Section 86 (1) (f) of the Electricity Act, 2003 at this stage. 13. In view of aforesaid and pending proceedings before NCLAT, we decide that the present petition is not admissible and maintainable and therefore any interim relief sought by the Petitioner is also not maintainable at this stage. Hence, the same are rejected. Considering the above, the present Petition and IA No. 2 of 2019 are dismissed.
The denial of relief by the Gujarat Electricity Regulatory Commission (GERC) has prompted the debt ridden Company IL&FS to file a petition before the National Company Law Appellate Tribunal (NCLAT
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