Central Transmission Utility Of India ... vs Sumit Binani

The Supreme Court examined the rights and obligations under Transmission Service Agreements (TSA) in the context of insolvency proceedings initiated against a power generation company, KSK Mahanadi Power Company Limited (KMPCL). The Court considered the treatment of a substantial cash deposit made by KMPCL with the transmission utility prior to the commencement of the Corporate Insolvency Resolution Process (CIRP). It was held that the transmission utility's claims and the status of the deposit must be adjudicated in light of insolvency laws and the contractual framework governing the transmission services. The judgment clarified the interplay between insolvency resolution and existing service agreements, ensuring equitable treatment of creditors and service providers.