Power ministry outfit under NCLT glare on bankruptcy plea by vendor

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.