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GE Power has retracted its insolvency petition against Bharat Heavy Electricals Ltd (BHEL) at the National Company Law Tribunal (NCLT). The move follows a commitment by state-owned BHEL to settle ₹25 crore by September 16.
In the event of BHEL failing to fulfill the pledged payment, GE retains the option to reinstate the insolvency plea, according to the tribunal’s ruling. GE Power, functioning as an operational creditor, had initiated NCLT action due to BHEL’s non-payment of ₹36 crore for materials supplied in support of a project based in Tamil Nadu. To date, BHEL has only remitted ₹5 crore of the outstanding sum.
Procurement of equipment
The dispute stemmed from BHEL’s procurement of equipment for a project undertaken by the Tamil Nadu Generation and Distribution Corporation in Uppur. Just prior to the scheduled August 17 hearing, BHEL communicated its commitment to deliver ₹25 crore by September 16, prompting GE Power to withdraw the insolvency plea.
According to reports, in 2016, BHEL granted GE Power a contract worth ₹271 crore to provide components and services essential for supercritical steam generator island packages. The contract was part of BHEL’s accomplishment in securing a substantial ₹5,600 crore order for the 2x800 MW coal-based Uppur Thermal Power Project from the Tamil Nadu Generation and Distribution Corporation.
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