Indian Renewable Energy Development Agency Limited Vs Novus Green Energy Systems Limited (NCLT Hyderabad)
The National Company Law Tribunal (NCLT), Hyderabad Bench, admitted an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against the corporate debtor due to default in repayment of financial debt amounting to ₹34,68,49,261 as on 15.09.2025.
The financial creditor had sanctioned a short-term loan facility of ₹36 crore to the corporate debtor through a sanction letter dated 19.03.2021 for execution of an EPC contract relating to a 15 MW Floating Solar PV Power Plant project awarded by Singareni Collieries Company Limited in Telangana. The total sanctioned loan amount of ₹36 crore was disbursed to the corporate debtor in multiple tranches between 31.03.2021 and 14.06.2024.
Following the sanction, the parties executed a Short-Term Loan Agreement dated 27.03.2021 detailing the terms and conditions governing the loan facility. Under the agreement, the corporate debtor was required to pay interest at 11.40% per annum. In the event of default, liquidated damages at 2% per annum over and above the applicable interest were chargeable. The borrower was also required to maintain a Trust and Retention Account (TRA), which was established through a TRA Agreement dated 27.03.2021 among the financial creditor, the corporate debtor, and IndusInd Bank Limited.
