GUJARAT URJA VIKAS NIGAM LIMITED VS. MR. AMIT GUPTA & ORS (2021)

The case Gujarat Urja Vikas Nigam Limited vs. Mr. Amit Gupta & Ors (2021) concerns the termination of a Power Purchase Agreement (PPA) between Gujarat Urja Vikas Nigam Limited (GUVNL) and Astonfield Solar (Gujarat) Private Limited (Corporate Debtor). After natural calamities disrupted the Corporate Debtor's operations, it was declared a Non-Performing Asset (NPA) and initiated the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code (IBC), 2016. The Supreme Court upheld the NCLT/NCLAT's decision to stay the PPA termination, as it was essential for the Corporate Debtor's survival during CIRP. The court emphasized the need for legislative clarity on ipso facto clauses and dismissed GUVNL's appeal, ensuring the continuation of the PPA to prevent liquidation.