Insolvency Petition Admitted for Default in Solar Power Agreement

The Tribunal admitted the petition under section 9 of the Insolvency and Bankruptcy Code, 2016, due to the corporate debtor's default in payment of invoices for normal units under a solar power purchase agreement. An interim resolution professional was appointed to oversee the insolvency resolution process, imposing a moratorium on legal actions against the debtor and asset disposal. The decision was communicated to the parties and the resolution professional promptly.

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Issues Involved:
1. Default in payment of invoices under the solar power purchase agreement.
2. Dispute over the tariff rates for banked and normal units.
3. Invocation of arbitration clause by the corporate debtor.
4. Corporate debtor's claim of non-crystallization of liabilities.
5. Admissibility of the petition under section 9 of the Insolvency and Bankruptcy Code, 2016.

Detailed Analysis:

1. Default in Payment of Invoices:
The petitioner, Valuelabs LLP, initiated the corporate insolvency resolution process against the corporate debtor, Global Energy P. Ltd., due to a default in payment of Rs. 3,92,29,844 as per section 9 of the Insolvency and Bankruptcy Code, 2016. The petitioner supplied power under a solar power purchase agreement, and despite providing signed settlement reports as proof, the corporate debtor failed to pay the outstanding dues. The petitioner also claimed an additional amount of Rs. 5,67,70,860 towards interest at 24% per annum from the date of default.

2. Dispute Over Tariff Rates:
The corporate debtor contested the petitioner's claims, stating that the agreed tariff was revised multiple times through amendments and addendums to the agreement. They argued that from December 13, 2016, the parties agreed to a reduced price of Rs. 3.70 per unit for banked energy, contrary to the billing structure proposed by the petitioner. The corporate debtor maintained that there should be no differentiation between banked and normal units in the performance of the agreement.

3. Invocation of Arbitration Clause:
The corporate debtor attempted to resolve the matter amicably and later invoked the arbitration clause as per the agreement. The corporate debtor issued a notice for arbitration on October 31, 2018, arguing that the petition before the Tribunal was premature due to the disputed price of electricity.

4. Non-crystallization of Liabilities:
The corporate debtor claimed that the liabilities could not be crystallized due to the disputed price and issues with reconciling accounts, citing software breakdown and loss of records. They acknowledged a willingness to pay at Rs. 3.70 per unit but disputed the petitioner's higher claims.

5. Admissibility of the Petition:
The Tribunal examined the arguments and documents, noting that the energy settlement statements distinguished between banked and normal units. The Tribunal found that the unpaid invoices pertained to normal units, which were not subject to the reduced price of Rs. 3.70 per unit. The Tribunal concluded that the corporate debtor defaulted on payments as per the terms of the agreements and addendums.

Conclusion:
The Tribunal admitted the petition under section 9 of the Insolvency and Bankruptcy Code, 2016, prohibiting the initiation or continuation of suits against the corporate debtor, transferring or disposing of assets, and other actions during the moratorium period. The Tribunal appointed an interim resolution professional to carry out the functions under the Code and directed the public announcement of the corporate insolvency resolution process. The petition was admitted, and the registry was instructed to communicate the order to both parties and the interim resolution professional immediately.

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