SC refuses to stay NCLAT order that discoms can’t terminate PPAs during insolvency process

The Supreme Court on Monday refused to stay the National Company Law Appellate Tribunal’s (NCLAT’s) decision that ruled that power distribution companies cannot terminate their power purchase agreement (PPA) with insolvent generating companies during the corporate insolvency resolution process (CIRP).

A bench led by Justice LN Rao while refusing to grant any relief to electricity distribution and trading company — Gujarat Urja Vikas Nigam (GUVNL) — said it will finally decide the matter in the second week of September.