REGULATORY · MARKET STRUCTURE · INDIA
India Supreme Court upholds implemented IBC resolution plan for SKS Power (Sarda Energy ₹1,950 crore bid)
Change
India’s Supreme Court dismissed appeals by Torrent Power, Jindal Power and Vantage Point Asset Management, upholding Sarda Energy’s ₹1,950 crore IBC resolution plan for SKS Power and noting the plan has already been approved and implemented.
Why it matters
The Supreme Court held there was no scope to interfere because Sarda Energy’s resolution plan had been approved by the NCLT and NCLAT and has been implemented, making the appeals meritless. The court emphasized the primacy of the lenders’ Committee of Creditors (CoC) and the doctrine of “commercial wisdom,” limiting judicial substitution on viability, valuation and haircuts. For insolvency participants, the decision increases finality once a plan clears tribunals and is executed, reducing the leverage of post-approval challenges by unsuccessful bidders. The case follows the NCLAT’s Oct. 1, 2024 order upholding the ₹1,950 crore bid and rejecting objections from other contenders.
Implications
- • SKS Power’s ownership/transfer under the approved plan is judicially finalized.
- • Unsuccessful bidders’ ability to overturn implemented IBC plans is further constrained.
- • CoC decisions on valuation/haircuts gain stronger protection from court re-review.
- • Litigation risk shifts toward process-compliance issues vs commercial merits challenges.
Who is affected
- • Sarda Energy & Minerals (resolution applicant/acquirer)
- • SKS Power Generation (target company)
- • Committee of Creditors and lenders in IBC processes
- • Competing bidders/appellants (Torrent Power, Jindal Power, Vantage Point Asset Management)
Source
Topics
Law & Public Safety Court Rulings Regulatory Actions Energy & Power Energy Transition