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Judgment
(Hybrid Mode)
Per: Justice N. Seshasayee, Member (Judicial)
This appeal is stated to have been resolved by the parties to the parties in terms of a joint memo filed by them, which will be reproduced below.
The appeal arises over a dispute between the service provider (RCRIPL) and the corporate debtor (erstwhile KSKMPCL), the appellant herein, over payment of certain invoices raised by RCRIPL. Both entities went into CIRP and have since been successfully resolved and the same entity (JSW Energy Limited) is a SRA of both. Consequent to it, both parties have decided to settle the dispute amicably and have entered into a settlement agreement to close the said dispute. The said fact is narrated in the memo in about 11 paragraphs which is reproduced below: -
“1.The present Joint Memo is being filed on behalf of JSW Mahanadi Power Company Limited, i.e., the Appellant herein and Raigarh Champa Rail Infrastructure Private Limited, i.e., the Respondent No. 1 herein, basis mutual settlement of disputes entered into between the Appellant and the Respondent No.1 on 06 August 2026, being the contesting parties in the captioned appeal.
2.Vide order dated 03 October 2019, the National Company Law Tribunal, Hyderabad Bench ("NCLT") admitted the Appellant (previously, KSK Mahanadi Power Company Limited) into the corporate insolvency resolution process ("CIRP") under Section 7 of the Insolvency and Bankruptcy Code, 2016 ("Code") in CP (IB) 492/07/HDB/2019.
3.Separately, vide order dated 01 January 2021, the NCLT admitted the Respondent No. 1 into CIRP under Section 7 of the Code in CP (IB) 187/07/HDB/2020.
4.During the course of the CIRP of the Appellant and Respondent No. 1, disputes arose between the Appellant and Respondent No. 1, being represented by their respective resolution professionals, pursuant to which I.A. No. 425 of 2021 in C.P. (IB) 187/HDB/2020 came to be filed before the Ld. NCLT by the erstwhile resolution professional of the Respondent No. 1 for payment of invoices raised under the Amended and Restated Agreement for Infrastructure Utilisation for Transportation of Coal dated 31 March 2014 between the Appellant and the Respondent No. 1.
5.Vide order dated 24 September 2021, the Hon'ble NCLT allowed I.A. No. 425 of 2021 ("Impugned Order"), challenging which the present appeal came to be filed by the Appellant through its erstwhile resolution professional.
6.In the present appeal, this Hon'ble Appellate Authority passed interim order dated 03 December 2021 vide IA No. 591 of 2021, directing: (i) Appellant to pay 50% of the outstanding due to Respondent No.1 within one month from the date of the order; (ii) Appellant to pay 50% of the invoices to be raised or raised by Respondent No. 1 periodically without fail; and (iii) Appellant cannot ask for adjustments of the amount already paid.
7.Thereafter, the said order came to be modified by this Hon'ble Appellant Authority vide order dated 04 October 2024 vide IA 914 of 2023 (together referred to as the "Interim Order"), wherein it was directed that: (i) Respondent No. 1 shall be permitted to raise invoices on the Appellant at 50% of the Minimum Guaranteed Quantity (as more particularly dealt with in the 2014 Agreement), (ii) Appellant shall pay the entire amount of such invoices, and (iii) Respondent No. 1 shall be permitted to issue credit notes for invoices previously raised against which 50% payment had already been made. The Appellant and Respondent No. 1 have complied and continue to comply with the Interim Order of this Hon'ble Appellate Authority.
8.The resolution plan of JSW Energy Limited in relation to the Appellant was approved by the Ld. NCLT vide order dated 13 February 2025 in IA (Plan) No. 2 of 2025 in CP (IB) 492/07/HDB/2019, which resolution plan stood implemented on 06 March 2025.
9.Subsequently, the resolution plan of JSW Energy Limited in relation to the Respondent No. 1 was approved by the NCLT vide order dated 21 January 2026 in IA (Plan) No. 9 of 2025 in CP (IB) 187/07/HDB/2020, which resolution plan stood implemented on 26 March 2026.
10.Pursuant to the above, the Appellant and Respondent No. 1 engaged in discussions to amicably settle the disputes between the parties.
11.In pursuance thereto, the Appellant and Respondent No. 1 have now agreed to settle the issues forming subject matter of the captioned appeal and have entered into a settlement agreement for closure of the dispute on 06 August 2026. Therefore, the parties pray that the captioned appeal be disposed of in light of the settlement between the parties.
In light of the above, the parties jointly pray that this Hon'ble Appellate Authority may be pleased to dispose Company Appeal (AT) (CH) (Ins) No. 272 of 2021 in light of the settlement arrived at between JSW Mahanadi Power Company Limited (Appellant) and Raigarh Champa Rail Infrastructure Private Limited (Respondent No. 1), and pass any other order(s) as this Hon'ble Appellate Authority may deem fit in the interest of justice.”
The joint memo thus filed is taken on record and accordingly, the appeal is disposed of in terms of the memo.