Power ministry outfit under NCLT glare on bankruptcy plea by vendor

EESL, NCLT

The National Company Law Tribunal (NCLT) on October 12 issued a notice to Energy Efficiency Services Limited (EESL), a public sector unit, following a insolvency resolution plea filed by a concern called NEEV Energy LLP, demanding Rs 3.23-crore dues.

NEEV claimed that it was awarded a tender in 2017 by EESL to install and maintain LED street lights in Uttar Pradesh and Bihar for seven years. NEEV's lawyer Zorawar Singh argued that the company started defaulting in making payments to them during 2019 to 2023.

Singh further claimed that as per the terms of the tender, EESL was supposed to make payments to them 30 days after they raise an invoice, however, they refused to make payments to them, citing poor performance.

Singh argued that NEEV had sent EESL a notice under the Insolvency and Bankruptcy Code, 2016, warning them of filing the plea if they do not explain why they have not made the payment. Since EESL's response was not satisfactory,  NEEV had to file the insolvency plea.

The NCLT thus issued notice to EESL and listed the case for further consideration on November 8. Singh was assisted by lawyers Hitesh Mankar and Shubham.

This is the second insolvency plea against EESL, after a company called Sumargsai Technologies was granted a tender to do similar work at Andhra Pradesh in 2022.

About EESL

Energy Efficiency Services Limited (EESL) is promoted by the ministry of power of the Union government. The company is a joint venture of four central PSUs such as NTPC Limited, PFC Limited, REC Limited and PowerGrid Corporation of India Limited.

EESL is responsible for implementation of the Unnat Jyoti by Affordable LEDs for All scheme, formerly known as the Domestic Efficient Lighting Programme.