National Company Law Tribunal Approves MAHAGENCO-NTPC Consortium's Resolution Plan for Sinnar Thermal Power Ltd.

With unanimous CoC approval, the INR 3800.14 crore plan marks a significant milestone in India's insolvency resolution framework, emphasizing the paramountcy of creditors' commercial wisdom.

In a landmark decision, the National Company Law Tribunal (NCLT), New Delhi Bench, has approved the resolution plan submitted by a consortium comprising Maharashtra State Power Generation Company Limited (MAHAGENCO) and NTPC Ltd. for Sinnar Thermal Power Limited. The tribunal's decision, dated November 28, 2025, underscores the limited jurisdiction of the NCLT to interfere with the commercial decisions of the Committee of Creditors (CoC) when these decisions align with the legal stipulations of the Insolvency and Bankruptcy Code, 2016.

The resolution plan, valued at INR 3800.14 crore, received unanimous approval from the CoC, marking a significant step forward in the revival of Sinnar Thermal Power Ltd., a company involved in real estate activities and energy production. The consortium's plan promises not only to address financial creditors' claims but also to ensure the operational revival of the debtor company, benefitting all stakeholders involved.

The adjudicating authority's order clearly delineates its role, emphasizing that its scrutiny is confined to ensuring compliance with the Code's legal requirements, rather than delving into the commercial wisdom exercised by the CoC. The tribunal reiterated the Supreme Court's precedents in cases like K. Sashidhar v. Indian Overseas Bank and Committee of Creditors of Essar Steel India Limited v. Satish Kumar Gupta, which affirm that the commercial decisions of the CoC are final if they adhere to the Code.

The tribunal also highlighted that the resolution plan meets the viability and feasibility criteria necessary for the revival of Sinnar Thermal Power Ltd. In line with the statutory framework, the tribunal has directed the establishment of a monitoring agency within seven days to oversee the plan's implementation, signifying the cessation of the moratorium under Section 14 of the Code.

The order mandates that the Resolution Professional (RP) hand over all relevant records to the Successful Resolution Applicant (SRA), allowing the latter to proceed with the necessary legal approvals and operational plans. The tribunal has clarified that any waivers or concessions sought by the SRA beyond what is provided in the Code must be pursued through appropriate legal forums.

This decision not only highlights the efficiency and effectiveness of India's insolvency resolution process but also reinforces the principle that the commercial wisdom of the CoC, when exercised within the legal framework, is paramount and binding.

Bottom Line:

Approval of Resolution Plan under the Insolvency and Bankruptcy Code, 2016, emphasizing the limited jurisdiction of the Adjudicating Authority to review the commercial wisdom of the Committee of Creditors (CoC).

Statutory provision(s): Insolvency and Bankruptcy Code, 2016 - Sections 9, 14, 25, 29A, 30(1), 30(2), 30(4), 30(6), 31(1), Regulation 31A of the CIRP Regulations, 2016.

Mr. Rahul Jindal v. Committee of Creditors of Sinnar Thermal Power Limited, (NCLT)(New Delhi Bench) : Law Finder Doc Id # 2815713