SKS Power Generation Chattisgarh Ltd. Vs Mr. V Nagarajan [Company Appeal (AT) (Insolvency) No. 206 of 2018] - Synopsis
Team SoOLEGAL 11 Jan 2021

In this case, SKS Power Generation Chattisgarh Ltd. Vs Mr. V Nagarajan [Company Appeal (AT) (Insolvency) No. 206 of 2018], the appellant had lodged an appeal against the Interim Order of the National Company Law Tribunal Chennai Bench, which had allowed the Respondent in an application filed pursuant to Sections 43 and 45 of the Insolvency and Bankruptcy Code 2016, and had ordered the Appellant to pay the amount of INR 158 crores collected from the Corporate Debtor.
The Respondent appeared and filed an affidavit in reply and pleaded that the Appellant was the 10th Respondent who had been ordered to refund the sum of Rs. 158 Crores as the balance had been paid to it by the Corporate Debtor. However, it was agreed that the challenged order was passed by means of a temporary order without determining if the application could be maintained according to Sections 43 and 45 of the Insolvency and Bankruptcy Code 2016.
The Appellant had pleaded that the National Company Law Tribunal Chennai Bench had authorized the main prayer, in the form of a temporary order, without even impleading and hearing the third party. The National Company Law Appellate Tribunal had set aside the interim order issued by the NCLT and held that the challenged order had been passed by means of an interim order without determining if the application could be maintained according to Sections 43 and 45 of the I&B Code and referred the case to the Adjudicating Authority to rule on the validity of the application if it had not yet been determined. The Appeal was granted with the above findings and instructions.

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