The Delhi High Court has directed Rattan India Nasik Power Ltd, formerly called Indiabulls Power, to give at least 10-day notice to Bharat Heavy Electrical Limited (BHEL) in case it intends to invoke or encash its bank guarantee of Rs 263 crore submitted by the latter under phase -I of the Nasik and Amravati Thermal Power Project.
Justice Rajiv Shakdher passed the order after BHEL moved court seeking protection against possible invocation of bank guarantees in light of the financial distress Rattan India is in as it reportedly reels under a debt of over Rs 20,000 crore.
BHEL, which was represented by senior advocates Rajiv Nayar and Ciccu Mukhopadhaya along with the team from K.N. Legal, led by Kartik Nayar and comprising advocates Mohit Mahla, Rishab Kumar and Sarthak Malhotra, told the high court that it apprehends Rattan India invoking the bank guarantee in the light of financial distress and the consequent insolvency proceedings.
Rattan India, which was represented by senior advocate Dayan Krishanan, on the other hand said there has been no attempt on its part to invoke the bank guarantee.
At this, Justice Shakdher said no interference is called for by the court at this stage since the petition is based on mere apprehension but directed the respondents to give written notice of at least 10 days if it intends to invoke or encash the bank guarantee.
Rattan India has been developing a total of 5,400 MW coal-based thermal power projects comprising two 2,700-MW power plants at Amravati and Nashik, in Maharashtra.
BHEL has commissioned over units of 270 MW each in these power plants.
Read the Order Here