2 weeks ago
JSW Mahanadi settles Raigarh Champa rail dispute; NCLAT disposes appeal
Two companies had a big argument about money.
One company builds a railway line to carry coal, and the other company makes electricity and uses that railway.
The railway company said the power company did not pay its bills.
Both companies got into money trouble and had to go through special company courts.
A big company called JSW Energy took over both of them.
Because the same boss now owned both companies, they decided to stop fighting.
They talked and signed an agreement on August 6, 2026.
The judges at NCLAT accepted their agreement and closed the case.
Now both companies can focus on moving coal and making electricity.
NCLAT's Chennai bench disposed of JSW Mahanadi Power's appeal against Raigarh Champa Rail Infrastructure Pvt Ltd after an amicable settlement.
The dispute originated from unpaid invoices under a 2014 coal transportation infrastructure agreement.
Both companies underwent separate insolvency proceedings, in 2019 and 2021, with JSW Energy Ltd emerging as the resolution applicant for both.
NCLAT had earlier passed interim orders in December 2021 and October 2024 directing a 50 per cent payment mechanism on outstanding and future invoices.
The two parties executed a settlement agreement on August 6, 2026, closing the dispute.
- Who
- JSW Mahanadi Power Company Ltd, Raigarh Champa Rail Infrastructure Pvt Ltd (RCRIPL), and JSW Energy Ltd, before the Chennai bench of NCLAT.
- What
- NCLAT disposed of an appeal after the two parties reached an amicable settlement over unpaid rail logistics invoices.
- Where
- India, before the Chennai bench of NCLAT; the rail line runs from coal fields in Mand Raigarh to power stations in Janjgir Champa.
- When
- The settlement agreement was executed on August 6, 2026; the NCLAT order was published on August 16, 2026.
- Why
- JSW Energy gained control of both companies through approved resolution plans, enabling the two sides to negotiate and settle their dispute.
Key facts
- Dispute origin
- Unpaid invoices under a 2014 coal transportation infrastructure agreement
- NCLT ruling for RCRIPL
- September 2021
- Interim NCLAT orders
- December 2021 and October 2024 - 50% payment mechanism on outstanding and future invoices
- KSK Mahanadi Power insolvency
- 2019
- RCRIPL insolvency
- 2021
- NCLT approval of JSW Energy plan for RCRIPL
- January 2026
- Settlement agreement date
- August 6, 2026
- NCLAT bench
- Justice N Seshasayee and Jatindranath Swain
Quotes
NCLAT Bench
Justice N Seshasayee (Judicial Member) and Jatindranath Swain (Technical Member) of the NCLAT Chennai bench
“The joint memo thus filed is taken on record, and accordingly, the appeal is disposed of in terms of the memo.”
thehindubusinessline.com
Sources
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