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The High Court of Meghalaya is hearing a case where the Meghalaya Power Distribution Corporation Limited is challenging insolvency proceedings initiated against it by the National Company Law Tribunal, arguing that it cannot be subjected to such proceedings due to its sovereign functions. The court has issued a notice to the respondent and suspended all proceedings before the Tribunal until further orders, citing potential irreparable damage to the Corporation and public interest. The matter is scheduled for further orders on 24-09-2025.

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0% found this document useful (0 votes)
18 views3 pages

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The High Court of Meghalaya is hearing a case where the Meghalaya Power Distribution Corporation Limited is challenging insolvency proceedings initiated against it by the National Company Law Tribunal, arguing that it cannot be subjected to such proceedings due to its sovereign functions. The court has issued a notice to the respondent and suspended all proceedings before the Tribunal until further orders, citing potential irreparable damage to the Corporation and public interest. The matter is scheduled for further orders on 24-09-2025.

Uploaded by

Raju Saxena
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Serial No.

01
Supp List

HIGH COURT OF MEGHALAYA


AT SHILLONG

WP(C). No. 383 of 2025

Date of Order: 04.09.2025

Meghalaya Power Distribution Vs. Satnam Global Infraprojects


Corporation Ltd. Limited.

Coram:
Hon’ble Mr. Justice [Link], Judge

Appearance:
For the Petitioner/Applicant(s) : Mr. [Link], AG with
Mr. [Link], Adv.
Mr. [Link], Adv.
Ms. [Link], Adv.
Mr. [Link], Adv.

For the Respondent(s) : -

1. The petitioner i.e. the Meghalaya Power Distribution Corporation


Limited, is before this Court assailing the proceedings instituted before the
learned National Company Law Tribunal, Guwahati Bench being
CP(IB)/9/GB/2024, IA(IBC)/188/GB/2024, IA(IBC)/41/GB/2025.

2. Learned Advocate General appearing for the petitioner has submitted


that the institution of the insolvency proceedings against the petitioner is
without any jurisdiction as the petitioner performs sovereign function of

1
distribution of electricity in the State of Meghalaya and being an arm of the
State, cannot be subject to insolvency under the Insolvency and Bankruptcy
Code, 2019. In this context, learned Advocate General has placed reliance
in the case of Hindustan Construction Company Limited & Anr. vrs. Union
of India reported in (2020) 17 SCC 324.

3. On the merits of the matter, it has been submitted that the


applicant/petitioner before the National Company Law Tribunal, Guwahati
Bench had filed an application under the Insolvency Code, alleging default
of payment on the invoices ranging from 01-05-2020 to 22-04-2021. He
submits that even by operation of the Code, the said proceedings are hit by
the limitation period. It is further submitted that the National Company Law
Tribunal, Guwahati Bench, has today orally pronounced the judgment,
whereby the interim resolution professional has been appointed. He submits
that in the event the same is put into effect, it would result in irreparable
damage not only to the Corporation but the public at large, and is against
public interest.

4. On hearing the learned Advocate General, let notice issue to the


respondent returnable in two weeks.

5. On the prayer for interim protection, on examination of the judgment


as placed and considering the actual aspect of the matter, a prima facie case
has been made out for some interim orders at this stage. Accordingly, it is
provided that until further orders, all proceedings before the National
Company Law Tribunal, Guwahati Bench in CP(IB)/9/GB/2024,
IA(IBC)/188/GB/2024, IA(IBC)/41/GB/2025, shall remain suspended,
which shall also include any directions for appointment of the interim
resolution professional.

2
6. Accordingly, list this matter on 24-09-2025 for further orders.

7. As this order has been passed ex parte, the respondent is at liberty to


file an application for modification and alteration thereof before the next
date.

Judge

Meghalaya
04.09.2025
“Samantha PS”

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