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TMI Blog2021 (1) TMI 1155X X X X Extracts X X X X X X X X Extracts X X X X ..... ). The RIL approached the Maharashtra Electricity Regulatory Commission (MERC) for approval of the procurement of power from the Corporate Debtor. 3. The MERC granted the approval by order dated 20th February 2013 subject to the Corporate Debtor's obtaining a No Objection Certificate (NOC) from MIDC. The MIDC after satisfying itself granted the NOC on 28th May 2013. The MERC thereupon granted its approval on 19th July 2013 for procurement of power by RIL from one of the units of the Corporate Debtor. Pursuant thereto a consolidated Power Purchase Agreement (PPA) was executed on 14th August 2013 between the Corporate Debtor and RIL. 4. The Corporate Debtor commenced supply of power to RIL with effect from 1st April 2014. The MERC under the Electricity Act 2003 was authorized to determine the tariff for supply of electricity from a Generating Company to the Supplying Company, in the present case, from the Corporate Debtor to RIL. The tariff can be periodically revised on an Application by the Corporate Debtor. Such Application is required to disclose the factors necessitating the revision. 5. The MERC accordingly had approved final tariff for the power plant by order dated 9th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sand Crores to other similarly placed Generating Companies in Maharashtra. The Corporate Debtor thereafter made a Consolidated Application for revision of the tariff in Case No. 199 of 2017. The MERC heard the matter on 8th January 2019 and is yet to pronounce order thereof. 9. The RIL also committed various defaults in respect of its obligation to make payment to the Corporate Debtor against supply of electricity. Correspondence exchanged between them in this regard bore no fruit. MERC by order dated 28th June 2018 in Case Nos. 139 & 140 of 2017 approved the transfer of Mumbai Distribution Business of RIL to Reliance Electric Generation and Supply Limited (REGSL). Adani Electricity Mumbai Limited (AEML) acquired REGSL on 29th August 2018. The amount payable by RIL, however, remained outstanding. The RIL by its letter dated 22nd August 2018 inter alia confirmed that it would remain liable to make good the outstanding payment. In a Memorandum of Understanding (MOU) dated 29th August 2018 between the Corporate Debtor and the REGSL, the latter agreed to support the Corporate Debtor in its litigation and would not do any act detrimental to its interest. The RIL by letter dated 3rd Sep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndment agreement between the Corporate Debtor and AEML. The MERC by order dated 3rd September 2019 approved the draft agreement and instructed AEML to sign the amended PPA by 5th September 2019. 15. The Corporate Debtor has six (6) institutional lenders including the present Financial Creditor with an aggregated exposure of approximately (???) 2987 Cr (Two Thousand Nine Hundred Eighty Seven Crores) as on 3rd January 2020. The other Financial Creditors have refrained from approaching this Authority under the Code. The admission of the present Company Petition would not only prejudicially affect the Corporate Debtor but also its other lenders and various other stakeholders. The power plant which is the most valuable asset of the Corporate Debtor would fetch maximum possible value through Resolution outside the Insolvency Resolution Process. It accordingly sought the following prayers: a) That this Hon'ble Tribunal be pleased to stay the present Company Petition pending the final hearing and disposal of, i) Civil Appeal No. 372 of 2017 by the Hon'ble Supreme Court; ii) Case No. 199 of 2017 by MERC; iii) Case No. 44 of 2020 by the MERC; and iv) Appeal No. 446 of 2019 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ex Court in Swiss Ribbons v. Union of India: (2019) 4 SCC 17 have set the tone for the proceeding before the Adjudicating Authority in order to make all endeavour to dispose of the matter in a time bound manner. The observation of the Hon'ble Court may profitably be quoted as under. "As is discernible, the Preamble gives an insight into what is sought to be achieved by the Code. The Code is first and foremost, a Code for reorganization and insolvency resolution of corporate debtors. Unless such reorganization is effected in a time-bound manner, the value of the assets of such persons will deplete. xxx xxx xxx Timely resolution of a corporate debtor who is in the red, by an effective legal framework, would go a long way to support the development of credit markets. xxx xxx xxx The timelines within which the resolution process is to take place again protects the corporate debtor's assets from further dilution, and also protects all its creditors and workers by seeing that the resolution process goes through as fast as possible so that another management can, through its entrepreneurial skills, resuscitate the corporate debtor to achieve all these ends." 21. The o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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