2019 (10) TMI 1488 - Tri - Companies Law

Rectification of mistake - error apparent from the record - typographical error or not - HELD THAT - The rectification of the order has been made in terms of the power conferred upon the Tribunal under Rule 154 of the NCLT Rules, 2016 - matter stands rectified and this order shall form an integral part of the order dated 30/09/2019. Application filed by the RP praying for not to give any effect to the termination of the Power Purchase Agreement by the respondent, GRIDCO - HELD THAT - The termination of the notice has been issued to the Corporate Debtor when the moratorium was in force. The application has been admitted vide order dated 18/02/2019 and the termination notice has been issued by the respondent/GRIDCO on 03/08/2019, which is in violation of Section 14(1) of the Il B Code, 2016 - the termination of the PPA agreement is in violation of the moratorium declared by the adjudicating authority in the case in hand - the respondent/GRIDCO is directed to restore the PPA dated 26/05/2012 as if there was no termination of PPA within one week of the date of the order. Service of notice - RP shows delivery of notice to R-2 and R-2 called out and found absent - HELD THAT - Nobody appears on the side of the R-2. Service of notice to the other respondents is incomplete. Directed to repeat notice by way of publication as per Rule 35 of the NCLT Rules and file affidavit of compliance. List it for further consideration on 29/10/2019.

Summary

Issues: Rectification of Typographical Error in Order, Termination of Power Purchase Agreement during Moratorium, Service of Notice to Directors, Exclusion of Certain Period, Issue Notice to Suspended Board of Directors

Rectification of Typographical Error in Order:
The Tribunal rectified a typographical error in an order dated 30/09/2019 where "Resolution Professional" was erroneously mentioned as "Liquidator." This rectification was made under Rule 154 of the NCLT Rules, 2016. The corrected order was made an integral part of the original order.

Termination of Power Purchase Agreement during Moratorium:
In CA(IB) No. 1184/KB/2019, the Resolution Professional (RP) filed an application seeking to invalidate the termination of a Power Purchase Agreement (PPA) by the respondent, GRIDCO, during the Corporate Insolvency Resolution Process (CIRP) of Ms. Alex Green Energy Pvt. Ltd. The Tribunal found that the termination notice issued by GRIDCO during the moratorium period was in violation of Section 14(1) of the Insolvency and Bankruptcy Code, 2016. Consequently, the Tribunal directed GRIDCO to reinstate the PPA within one week.

Service of Notice to Directors:
In CA(IB) No. 1205/KB/2019, the RP filed an application where notice delivery to directors of the Corporate Debtor was addressed. While one director was absent upon notice delivery, service to other respondents was incomplete. The Tribunal directed the RP to repeat the notice through publication as per Rule 35 of the NCLT Rules and file an affidavit of compliance for further consideration.

Exclusion of Certain Period:
In CA(IB) No. 1300/KB/2019, an application was made for the exclusion of a specific period. The Tribunal directed the RP to expedite the resolution process without delay to find a resolution applicant as the 270-day period was set to expire on 14/11/2019.

Issue Notice to Suspended Board of Directors:
CA(IB) No. 1286/KB/2019 involved the issuance of notice to the respondents, the suspended Board of Directors of the Corporate Debtor. The Tribunal directed the return of notice and listed the matter for further consideration on 29/10/2019, as the extended CIRP period was due to expire on 14/11/2019.