This news brings relief to JSW Energy, which had requested authorization to engage in the insolvency resolution proceedings for Raigarh Champa Rail Infrastructure Pvt Ltd (RCRIPL), an affiliate of KSK Mahanadi.
JSW Energy previously acquired KSK Mahanadi Power, a 3,600 MW thermal power facility in Chhattisgarh, for ₹16,084 crore during the insolvency procedure earlier this March.
The Chennai bench of the NCLAT stated it finds no flaws in the lenders’ Committee of Creditors (CoC) decision to call for a fresh Expression of Interest (EoI) by reissuing Form G, inviting new potential buyers as it “will undoubtedly boost competition and likely lead to higher bids.”
“…. since the EoI is set to be reopened to all interested parties and not just JSW, this is fair and transparent, and not discriminatory; additionally, existing PRAs (Prospective Resolution Applicants) will retain their option to join the challenge mechanism, which is also equitable for current Resolution Applicants,” the tribunal elaborated.
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Furthermore, regarding the bid from the Medha group, which had received unanimous approval from RCRIPL lenders previously and was the highest offer, the tribunal commented it is “proposed as the Reserve Price, indicating that there can be no value erosion of the Corporate Debtor if the EoI process is recommenced.” The race to acquire the special Purpose Vehicle (SPV) backed by KSK group included five companies: Adani Power, Jindal Power, Medha Servo Drives, Sherisha Technologies, and Vedanta.
Previously, on April 3, 2025, the Hyderabad bench of the National Company Law Tribunal (NCLT) rejected a request from the RP and the Committee of Creditors (CoC) to issue a fresh Form G and invite EoIs from new eligible Prospective Resolution Applicants, including JSW Energy.
Instead, in the new bidding process, the NCLT instructed the implementation of the challenge mechanism among bidders as previously determined by the CoC. However, the NCLAT noted it found no flaws in the RP’s proposal and the CoC’s decision, as historically, the lenders’ body is empowered to call for a new Form G and allow other PRAs to participate even after the submission of EoIs.
“The impugned order of April 3, 2025, is hereby quashed. Consequently, the relief sought by the Resolution Professional—to issue a fresh Form G and invite Expression of Interest (EoI) from new and interested eligible Prospective Resolution Applicants—is granted,” stated the NCLAT order delivered on June 19, 2025, by a panel consisting of Justice Sharad Kumar Sharma and Jatindranath Swain.
Form G under IBC serves as an Invitation for Expression of Interest (EoI) published by the Resolution Professional (RP) to attract potential resolution applicants to submit proposals for taking over a company undergoing CIRP.
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RCRIPL is a SPV promoted by the KSK group designed to construct and lay railway lines alongside associated infrastructure from coal fields in Mand Raigarh to power stations in Janjgir Champa. This line integrates with the Indian Railways Network for transporting coal, associated fuels, raw materials, as well as fly ash.
The CIRP was initiated against RCRIPL on January 1, 2021, and the first final Form G was issued on August 24, 2021. However, the EoI submission process was stalled until May 2024 because the NCLT instructed the RP of KMPCL (KSK Mahanadi Power Company Ltd) not to receive any resolution pending the resolution of various proceedings concerning the consolidation of the CIRP of KMPCL and KWIPL (KSK Water Infrastructures).
On July 4, 2024, the CoC approved Medha’s resolution plan with 100 percent voting share and sought authorization from NCLT. However, before the Hyderabad bench of the NCLT could greenlight Medha’s bid, the RP of RCRIPL filed another request to allow a challenge mechanism among the resolution applicants/bidders in line with the CIRP Regulations.
This withdrawal application for Plan Approval by lenders was accepted by a majority voting share of 78.59 percent of the CoC, and the NCLT permitted it. Instead of moving forward with the challenge mechanism, however, the RP subsequently filed a separate plea seeking to reopen the bidding process for RCRI, allowing JSW Energy to participate in the CIRP.
This new request by the RP to initiate the bidding process and include JSW Energy was rejected by the NCLT, claiming it contradicted the principles of fairness and the CIRP’s timelines. Later on, JSW Energy also approached the NCLT by filing applications requesting permission to participate in the CIRP of Raigarh Champa Rail Infrastructure by asking for a fresh Form G, which was again dismissed.
Eventually, the RP submitted a third application to facilitate JSW’s entry as a Resolution Applicant in the CIRP of RCRI, seeking permission from the tribunal to publish a fresh Form G and invite EoI “from new, interested, and eligible Prospective Resolution Applicants” for Resolution Plan submissions.
This request was again turned down by a two-member bench of the NCLT, consisting of Members Sanjay Puri and Rajeev Bhardwaj, on April 3, 2025. This was subsequently challenged in the appellate tribunal NCLAT, which on June 16 revoked the NCLT’s order.
