The Hon’ble Supreme Court in the matter of Gujarat Urja Vikas Nigam Limited vs. Amit Gupta and Ors. (08.03.2021 – SC) : MANU/SC/0157/2021 held that the National Company Law Tribunal had rightfully exercised its jurisdiction in a contractual matter, with respect to putting on hold the termination of the power purchase agreement between the parties:-
“In conclusion, we hold that:
(i) The NCLT/NCLAT could have exercised jurisdiction Under Section 60(5)(c) of the IBC to stay the termination of the PPA by the Appellant, since the Appellant sought to terminate the PPA Under Article 9.2.1(e) only on account of the CIRP being initiated against the Corporate Debtor;
(ii) The NCLT/NCLAT correctly stayed the termination of the PPA by the Appellant, since allowing it to terminate the PPA would certainly result in the corporate death of the Corporate Debtor due to the PPA being its sole contract; and
(iii) We leave open the broader question of the validity/invalidity of ipso facto clauses in contracts for legislative intervention.”