Shardul Amarchand Mangaldas & Co Secures Significant Order for KSK Mahanadi Power Company Before NCLT Hyderabad
The leading law firm in India, Shardul Amarchand Mangaldas & Co, has secured a significant order before the Hon’ble National Company Law Tribunal (NCLT), Hyderabad Bench, in favour of its client, KSK Mahanadi Power Company Ltd (“KMPCL”).
Tribunal Directs Immediate Release of Withheld Cargo
The Restructuring & Insolvency Team successfully obtained an order directing the immediate release of cargo withheld by the customs and port authorities without insisting on any further payment or clearance under any other statute, despite full settlement of their admitted claims under an NCLT-approved Resolution Plan.
NCLT Reaffirms the “Clean Slate” Principle
The Tribunal reaffirmed the “clean slate” principle under the Insolvency and Bankruptcy Code, 2016 — holding that once a Resolution Plan is approved and implemented under Section 31(1), all stakeholders are bound by it and no further claims, charges, or conditions can be imposed. The order fully extinguishes any pre-CIRP and CIRP-period dues and prevents any enforcement contrary to the approved Resolution Plan.
Major Milestone in India’s Insolvency Resolution Landscape
KMPCL represents the largest acquisition of a thermal power asset under the IBC in India, marking a major milestone in the insolvency resolution landscape. Earlier this year, JSW Energy Limited acquired KMPCL, which has 3,600 MW (6 X 600 MW) of thermal power capacity and is located in Chhattisgarh.
Representation
Shardul Amarchand Mangaldas & Co’s team was led by Anoop Rawat (National Practice Head – Restructuring & Insolvency), along with Allwin Godwin (Partner), Vishrut Kansal (Principal Associate), Aditya Marwah (Principal Associate), Niranjana Pandian (Associate), and Snigdha Saraff (Associate).
Senior Advocate Gopal Jain represented the client before the NCLT.
Reinforcing the Sanctity of Resolution Plans
This ruling reinforces the sanctity and finality of NCLT-approved resolution plans — ensuring certainty for successful resolution applicants and enabling seamless implementation post-acquisition.
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