Tribunal mandates police protection for asset handover in IDBI Bank vs. Powerdeal Energy Systems case
The National Company Law Tribunal (NCLT), Mumbai Bench, has issued a decisive ruling in the case of IDBI Bank Limited versus Powerdeal Energy Systems India Private Limited, directing the suspended directors and ex-promoters of the corporate debtor to hand over possession of all assets, including land measuring 80,400 sq. mtrs., as stipulated in the approved resolution plan. The tribunal emphasized that failure to comply would result in police intervention to enforce possession.
The case, involving the corporate debtor Powerdeal Energy Systems, was initiated under the Corporate Insolvency Resolution Process (CIRP) following an order by the tribunal dated July 11, 2024. The approved resolution plan, submitted by the Successful Resolution Applicant (SRA), received unanimous approval from the Committee of Creditors (CoC) and was ratified by the tribunal on October 16, 2025.
Central to the dispute is the land at Village Vilholi, Nashik, which forms a critical part of the resolution plan. Despite the tribunal’s prior orders, the ex-promoters have only partially complied, handing over just 22,962 sq. mtrs. The tribunal has now reiterated its directive for the full 80,400 sq. mtrs. to be transferred to the SRA.
In a related application, the tribunal dismissed claims by licensees occupying premises in Nashik, citing that their lease periods had expired and their eviction fell outside the tribunal's jurisdiction post-approval of the resolution plan.
The tribunal's orders highlight the stringent enforcement mechanisms under the Insolvency and Bankruptcy Code, 2016, to ensure compliance with approved resolution plans, underscoring the role of judicial and police authorities in facilitating these corporate restructuring processes.
Bottom Line:
Insolvency and Bankruptcy Code, 2016 - Implementation of approved resolution plan - Directions issued to suspended directors and ex-promoters of corporate debtor to hand over possession of all assets as per approved resolution plan.
Statutory provision(s): Insolvency and Bankruptcy Code, 2016 Sections 60(5), 74(2), 31
