NCLT Delhi Clears ₹3,800-Crore MAHAGENCO–NTPC Plan To Revive Sinnar Thermal Power

The National Company Law Tribunal (NCLT) at Delhi has recently approved a ₹3,800 crore resolution plan jointly submitted by public sector power companies, Maharashtra State Power Generation Company (MAHAGENCO) and National Thermal Power Corporation (NTPC) to revive the defunct Sinnar Thermal Power Limited in Maharashtra, holding that the proposal met all requirements under the Insolvency and Bankruptcy Code (IBC). A coram of Judicial Member Manni Sankariah Shanmuga and Technical Member Atul Chaturvedi noted that the plan, which received 100% approval from the Committee of Creditors (CoC), complied fully with the Code. “The Resolution Plan was submitted by consortium of MAHAGENCO and NTPC, which are leading PSUs in power sector, with 100% voting in 26th CoC meeting and no provision of the IBC is contravened. We find that the Resolution Plan meets the requirement of being a viable and feasible and for revival of the Corporate Debtor. By and large, there are provisions for making the Plan effective after approval by this Bench.”, the tribunal said.Sinnar Thermal entered insolvency on September 19, 2022, after a plea filed by Shapoorji Pallonji Company. The CoC approved the MAHAGENCO–NTPC plan on June 13, 2025, following a competitive process in which six plans were received, Resolution Professional Rahul Jindal informed the tribunal. He said the chosen plan met all legal requirements and offered a workable roadmap for reviving Sinnar Thermal, including clear timelines for implementation. Reiterating that tribunals cannot review the commercial wisdom of creditors, the tribunal said, “This Authority is neither empowered nor obligated to delve into or evaluate the commercial wisdom of the Committee of Creditors (CoC), which is paramount and binding, provided it aligns with the provisions of the Code.” During the hearing, the consortium had sought several waivers and concessions, including exemptions from statutory approvals and a waiver of Sinnar Thermal's past liabilities. Referring to the Supreme Court ruling in Embassy Property Developments Pvt. Ltd. (2019), the tribunal clarified that only reliefs specifically permitted under the IBC can be granted at the approval stage, and statutory authorities remain free to act under applicable laws. While clearing the plan, the tribunal lifted the moratorium, discharged Jindal from his duties, and directed the formation of a monitoring committee within seven days. The successful applicants have also been allowed to take over the company's management as per the approved plan Case Title: Rahul Jindal vs Committee of Creditors of Sinnar Thermal Power Limited Case Number: CP. No. IB-2561/(ND)/2019 For Resolution Professional: Ahinav Vasisht, Sr. Advocate, Bishwajit Dubey, Somesh Srivastava, Drishti Kaushik, Karan Gandhi, Ramakant Rai, Abhilasha, Akshita, Shikhar, Advocates Click Here To Read/Download Order

NCLT Delhi Clears ₹3,800-Crore MAHAGENCO–NTPC Plan To Revive Sinnar Thermal Power

Kirit Singhania

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