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[I] SC rejects Avantha Holdings' plea against NTPC IBC plan for Jhabua Power

 

Informist, Tuesday, Nov. 18, 2025

 

--SC rejects Avantha Holdings' plea against NTPC's IBC plan for Jhabua Power 

 

By Surya Tripathi

 

NEW DELHI – The Supreme Court Tuesday rejected Avantha Holdings Ltd.'s plea challenging NTPC Ltd.'s resolution plan for debt-ridden Jhabua Power Ltd. Avantha Holdings is a promoter and shareholder of Avantha Power and Infrastructure Ltd., which holds 17.9% shares of Jhabua Power.

 

Avantha Holdings had sought the disqualification of NTPC under Section 29A of the Insolvency and Bankruptcy Code, 2016, from the Corporate Insolvency Resolution Process for Jhabua Power. Section 29A of the Insolvency and Bankruptcy Code, 2016 bars certain individuals and entities from submitting a resolution plan for a distressed company. Further, Avantha Holdings had challenged the decision of Jhabua Power's committee of creditors to reject its restructuring and settlement proposal for the debt-ridden company.

 

In 2019, the Kolkata bench of the National Company Law Tribunal had admitted FLSmidth Pvt. Ltd.'s plea to start insolvency proceedings against Jhabua Power. In 2020, Avantha Holdings made a proposal to the members of the committee of creditors for the settlement of debt owed by Jhabua Power. 

 

Thereafter, in 2021, the Kolkata tribunal found NTPC's resolution plan feasible and viable and approved it. The Kolkata tribunal noted that Avantha Holdings' settlement plan was not commercially viable and rejected its application seeking to disqualify NTPC in the insolvency process.

 

Avantha Holdings had argued that two joint ventures of NTPC – Ratnagiri Gas and Power Pvt. Ltd. and Konkan LNG Pvt. Ltd – had already been classified as non-performing assets, and  NTPC was disqualified in the insolvency proceedings of Jhabua Power by virtue of Section 29A(c) and Section 29A(j) of the 2016 code.

 

NTPC had said that Canara Bank had classified Ratnagiri Gas and Power and Konkan LNG as non-performing assets in 2018, and by then, the one-year period from the date of commencement of insolvency proceedings had not elapsed, so disqualification under Section 29A(c) was not attracted. The entire debt of Konkan LNG was settled through a one-time settlement in 2020, and all lenders had issued no due certificates, NTPC had said.

 

In 2022, the Kolkata tribunal and the National Company Law Appellate Tribunal had rejected Avantha Holdings' plea. Avantha Holdings had moved the Supreme Court challenging the same.

 

On Tuesday, NTPC shares ended 0.5% lower at INR 328.45 on the National Stock Exchange.  End

 

Edited by Saji George Titus

 

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