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PSU as a “Corporate Person” Under Bankruptcy Code: NCLT Chennai Reserves Order

Team SoOLEGAL 11 Sep 2017 12:13pm

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PSU as a “Corporate Person” Under Bankruptcy Code: NCLT Chennai Reserves Order

The National Company Law Tribunal (NCLT), Chennai, holds an order pertaining to the question whether a PSU should be treated as a “corporate person” as per the Insolvency and Bankruptcy Code.

The court is yet to make a decision on the petitions filed against the State government-owned power distribution company Tamil Nadu Generation and Distribution Company Ltd. (Tangedco), by the power producers Ind. Bharath Thermal Limited, Aarkay Energy (Rameshwaram) Limited and Ind. Bharath Power Gencom Ltd.

The petitions aim to recover the receivables of around Rs. 600 crore as put together in all the three organizations, from the discom by initiating the corporate insolvency resolution process.

The matter also looks into the impacts of appointing an Insolvency Resolution Professional in issues of such nature. The NCLT has also held back the issues as it's unclear if the dispute regarding an electricity matter can be presented before the Tamil Nadu Electricity Regulatory Commission pursuant to the provisions of the Electricity Act, 2003.

The matter is being heard by the NCLT member Mr. Anantha Padbanabhaswamy with the Senior Advocate Anirudh Krishnan representing Ind. Bharath Power Gencom Ltd and the Additional Advocate General Senior Advocate Manishankar advancing arguments from TANGEDCO.



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Tagged: Bankruptcy Code   NCLT Chennai   Tamil Nadu     
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