State-run Indian Renewable Energy Development Agency Ltd. (IREDA) has moved both National Company Law Tribunal (NCLT) under the provisions of Insolvency and Bankruptcy Code (IBC) and the Debt Recovery Tribunal for recovery of its dues of ₹729 crore from Gensol Engineering Ltd and its arm, Gensol EV Lease Pvt Ltd.
| Photo Credit: Special arrangement
State-run Indian Renewable Energy Development Agency Ltd. (IREDA) has moved both National Company Law Tribunal (NCLT) under the provisions of Insolvency and Bankruptcy Code (IBC) and the Debt Recovery Tribunal for recovery of its dues of ₹729 crore from Gensol Engineering Ltd and its arm, Gensol EV Lease Pvt Ltd.
Can IREDA seek relief in two forums?
“It is legally permissible for a financial creditor like IREDA to initiate parallel proceedings under both the DRT framework and the Insolvency and Bankruptcy Code (IBC) provided the objectives are distinct and not barred by law”, Akshat Khetan, Founder, AU Corporate Advisory and Legal Services said.
While the DRT route seeks recovery of specific dues, IBC aims at resolving insolvency through either revival or liquidation of the debtor entity, he said.
However, Mr. Khetan said once an application is admitted under IBC a moratorium is triggered under Section 14 of the Code, which halts all recovery proceedings, including those before the DRT.
Thus, although initial filings in both forums are allowed, the IBC process, being a comprehensive remedy, overrides and suspends recovery actions like DRT post-admission, he added.
Published – May 22, 2025 11:28 am IST
