Danu Wind Parks Private Limited v. Ecoren Energy India Private Limited
Case brief
What is this about?
AP High Court, Amaravati (Dhiraj Singh Thakur, C.J. and Ravi Cheemalapati, J.), 11-07-2025: Writ Appeal Nos. 792–795 of 2025 by wind/solar generators (Ecoren Energy, Danu, Aeolus, Fujin and Dindore Winds, Ananthapur Energy Projects, Boreas Renewable Energy, Jwalya Wind) against vacation of the interim orders dated 02-01-2020 and 22-11-2022 shielding them from NPA declaration/coercive action by lender-respondents (incl. IIFCL, Tata Cleantech, PTC India Financial Services, Reliance Capital, RBI, IREDA) were dismissed; lenders' statutory NPA/recovery right held not contingent on DISCOM payments under the PPAs; no precedent cited.
What did the court decide?
The right vested with the lenders to declare an account as an NPA is a statutory right to recover the outstanding dues and cannot be made subject to a further recovery from a third party like the power distribution company, which is not a signatory to the loan agreements entered into between the appellants and the lenders.