Power Finance Corporation Moves NCLT Against Rattan India

State-owned Power Finance Corp. has filed an insolvency plea against Rattan India Power Ltd., formerly known as Indiabulls Power, in the National Company Law Tribunal to recover unpaid loans.

A two-member bench of NCLT Tuesday adjourned the matter to Nov. 26 as the Supreme Court has ordered a status quo in insolvency pleas against power companies. PFC has also moved insolvency plea against another firm Rattan India Nashik Power.

Rattan India has defaulted on loans to the tune of Rs 20,000 crore. The group has two integrated thermal power plants at Nashik and Amravati in Maharashtra.

On Sept. 11, the apex court had asked the banks not to file any insolvency cases till November when it would hear the matter.

However, the counsel appearing for PFC said that it moved NCLT on the same day before the order was passed by the apex court and it was listed for hearing on Sept. 18.