1 day ago
Supreme Court Review Dismissal Highlights IBC’s Costly Post-Approval Litigation
India has a law called the Insolvency and Bankruptcy Code, or IBC, that helps struggling companies recover or close.
SKS Power Generation went through this process after facing serious business problems.
Seven applicants competed to take over the company.
The creditors unanimously chose Sarda Energy and Minerals’ plan in June 2023.
However, applicants whose plans were rejected kept challenging the decision in different courts and tribunals.
This meant the winning plan remained uncertain for years.
The Supreme Court later rejected the final review petitions.
The article says this should discourage endless challenges while still allowing courts to address genuine rule-breaking or unfairness.
The Supreme Court of India dismissed Vantage Point’s review petitions on July 15.
SKS Power Generation entered insolvency in April 2022 after operational and sectoral difficulties.
Creditors unanimously approved Sarda Energy and Minerals’ resolution plan by June 2023.
Unsuccessful applicants challenged the resolution through multiple tribunals and the Supreme Court over four years.
The ruling signals that legitimate challenges remain possible, but endless litigation cannot delay insolvency resolutions indefinitely.
- Who
- SKS Power Generation, its creditors, Sarda Energy and Minerals, unsuccessful resolution applicants, and the Supreme Court of India.
- What
- The Supreme Court dismissed review petitions challenging the resolution of SKS Power Generation, bringing prolonged post-approval litigation closer to an end.
- Where
- The challenges proceeded before the National Company Law Tribunal, the appellate tribunal, the Supreme Court of India, and through a review petition.
- When
- SKS Power Generation entered insolvency in April 2022; creditors approved the plan by June 2023; the NCLT approved it in August 2024; the Supreme Court dismissed the review petitions on July 15.
- Why
- Unsuccessful applicants challenged the approved resolution, while the Supreme Court emphasized that insolvency proceedings should not be prolonged by endless litigation.
Key facts
- Company
- SKS Power Generation (Chhattisgarh) Limited
- Insolvency admission
- April 2022
- Resolution applicants
- Seven applicants participated in the competitive process
- Approved bidder
- Sarda Energy and Minerals
- Creditor vote
- The Committee of Creditors approved the plan unanimously, with 100% of votes
- NCLT approval
- August 2024
- Review outcome
- The Supreme Court dismissed Vantage Point’s review petitions on July 15
Sources
Related news
Subhash Chandra Insolvency Deal Intensifies Debate Over India’s IBC
Subhash Chandra Settlement Highlights India’s Deep Insolvency Haircuts
Delhi High Court Bars Old Government Dues After Insolvency Approval
Lenders Challenge NCLT Approval of Subhash Chandra Repayment Plan
NCLT Stays Subhash Chandra Repayment Plan, Orders Fresh Hearing
NCLT Approves Subhash Chandra’s Rs 6.5-Crore Repayment Plan
22 Injured After Bus Falls Into Gorge in Uttarakhand
Supreme Court Holds Lift Makers, Owners, Maintainers Jointly Liable
Delhi Police Apologizes After Lawyers Manhandled
