JSW Mahanadi Power settles dispute with Raigarh Champa Rail; NCLAT disposes of appeal

Insolvency appellate tribunal NCLAT has disposed of an appeal filed by JSW Mahanadi Power Company Ltd against Raigarh Champa Rail Infrastructure Pvt Ltd (RCRIPL) after the two parties reached an amicable settlement, with JSW Energy now controlling both entities.

The Chennai bench of the National Company Law Appellate Tribunal (NCLAT) disposed of the appeal based on a joint memo filed by the two companies, recording the settlement between them.

"The joint memo thus filed is taken on record, and accordingly, the appeal is disposed of in terms of the memo," said a NCLAT bench comprising Justice N Seshasayee (Judicial Member) and Jatindranath Swain (Technical Member).

The dispute originated from unpaid invoices raised by RCRIPL, a rail logistics service provider, against JSW Mahanadi Power (formerly KSK Mahanadi Power Company Ltd) under a 2014 coal transportation infrastructure agreement.

Both companies subsequently underwent separate insolvency proceedings, KSK Mahanadi Power in 2019 and RCRIPL in 2021 and JSW Energy Ltd emerged as the successful resolution applicant for both.

RCRIPL's erstwhile resolution professional had moved the National Company Law Tribunal (NCLT) seeking payment of outstanding invoices, and the NCLT ruled in its favour in September 2021. Following this, an appeal was filed by JSW Mahanadi Power before the appellate tribunal, NCLAT.

During the pendency of the appeal, the NCLAT had passed interim orders in December 2021 and October 2024, directing a 50 per cent payment mechanism on outstanding and future invoices, which was complied with by both of the parties.

Later, in January 2026, NCLT approved the resolution plan of JSW Energy for RCRIPL. NCLT had already approved the resolution plan of Sajjan Jindal-led JSW Energy for KSK Mahanadi Power Company.

With JSW Energy's resolution plans for both companies coming into the JSW Energy fold, the two sides entered into settlement talks and executed a settlement agreement on August 6, 2026, resolving the dispute.

"Consequent to it, both parties have decided to settle the dispute amicably and have entered into a settlement agreement to close the said dispute," the NCLAT order noted.

RCRIPL is a special purpose vehicle promoted by the KSK group to construct and lay a railway line and associated infrastructure from coal fields in Mand Raigarh to power stations in Janjgir Champa.

It passes through the Indian Railways network for transporting coal, associated fuels and other raw materials, as well as fly ash.