By Sachin Murdeshwar

Mumbai: Mr. Huzefa Sitabkhan, Partner of Think Capital Insolvency Professionals LLP, successfully executed the Corporate Insolvency Resolution Plan and the definitive agreement between NHPC Limited (India’s premier hydropower company and Mini-Ratna company under Union Ministry of Power), Lanco Teesta Hydro Power Limited (Lanco Teesta) and Committee of Creditors (CoC) in his capacity of the Resolution Professional of the Corporate Debtor. On October 09, 2019, NHPC transferred the total Resolution Plan consideration amount; i.e., Rs. 897.50 crore in favour of Lanco Teesta.

Further, the possession of the assets of Lanco Teesta was also transferred in the favour of NHPC. The process of handing over of assets was conducted in the presence of Mr. Balraj Joshi, CMD, NHPC Limited and other directors and senior officials of NHPC and Huzefa Sitabkhan and his team members of Think Capital Insolvency Professionals LLP.

The Corporate Insolvency Resolution Process under the Insolvency Bankruptcy Code, 2016 was invoked in Lanco Teesta Hydro Power Limited vide an order dated March 16, 2018 passed by the Hon’ble National Company Law Tribunal, Hyderabad Bench. Thereafter Mr. Huzefa Sitabkhan, Partner of Think Capital Insolvency Professionals LLP was appointed as the Interim Resolution Professional and was subsequently confirmed as its Resolution Professional by the Committee of Creditors (CoC) of Lanco Teesta.

Mr. Huzefa Sitabkhan, Resolution Professional, invited Resolution Plans for Lanco Teesta. Pursuant to the same, NHPC Limited (“NHPC”) had submitted a Resolution Plan, which was approved by the CoC. The said Resolution Plan was approved by the NCLT vide order dated July 26, 2019. Accordingly, NHPC took over Lanco Teesta under the aegis of the Insolvency and Bankruptcy Code.

Mr. Huzefa Sitabkhan, Partner of Think Capital Insolvency Professionals LLP, said, “This is the first instance wherein a major Public Sector Undertaking has acquired a Corporate Debtor through the CIRP Process under the aegis of the Insolvency and Bankruptcy Code of India. This would definitely pave the way for other PSU’s to come forward and bid for stressed infrastructure companies which will ultimately benefit all stakeholders and preserve the national assets.”