Indore hotel giant Sayaji faces insolvency storm over ₹47.8 cr solar energy dispute

K K Jha
INDORE: Sayaji Hotels (Indore) Limited, a cornerstone of central India’s hospitality sector, is facing a formidable legal challenge as Ujaas Energy Limited, a solar energy provider, has filed a petition under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, claiming ₹47,792,108 (including interest). The petition, lodged before the National Company Law Tribunal (NCLT), Indore Bench, has not yet been admitted but signals a deepening financial and legal crisis for the hotel chain, rooted in a dispute over unpaid solar energy dues.
A High-Stakes Legal Battle
The insolvency petition marks a significant escalation in a contentious dispute between Sayaji Hotels and Ujaas Energy. According to a letter dated August 21, 2025, from Sayaji’s Company Secretary, Aaditya Kasera, to the Department of Corporate Affairs, Mumbai, the company received an advance notice of the petition via email from JMVD Legal, representing Ujaas, on August 20, 2025. This followed a final demand notice issued on June 12, 2025, to which Sayaji responded with a detailed reply on June 22, 2025, indicating a pre-existing dispute over the claimed amount.
The ₹47.8 crore claim pertains to the supply of solar energy by Ujaas to Sayaji’s operations, a deal that has soured. Under Section 9 of the IBC, operational creditors like Ujaas can initiate insolvency proceedings for unpaid dues exceeding ₹1 crore, provided the debt is undisputed. However, Sayaji’s response to the demand notice suggests the company contests either the validity or quantum of the claim, a factor that could influence the NCLT’s decision on admitting the petition. Legal precedents, such as The West Bengal Power Development Corporation Ltd. Vs Ujaas Energy Ltd. (Calcutta High Court), emphasize that a pre-existing dispute can bar insolvency proceedings, making Sayaji’s defense critical.
A Web of Disputes with MPPKVVCL
Complicating matters, Sayaji is also entangled in a separate dispute with Madhya Pradesh Paschim Kshetra Vidyut Vitaran Company Limited (MPPKVVCL), a state-owned electricity distribution company headquartered at GPH Compound, Polo Ground, Indore. According to Sayaji’s communication, this dispute has led to a writ petition filed before the Madhya Pradesh High Court, Indore Bench. While details of the MPPKVVCL conflict remain sparse, it appears linked to the broader solar energy supply chain, potentially involving regulatory, contractual, or payment issues.
MPPKVVCL, responsible for electricity distribution across Indore, Gwalior, and Ujjain, is a key player in Madhya Pradesh’s energy sector. Its involvement in the dispute underscores the complexities of integrating renewable energy into corporate operations, particularly when public and private entities intersect. The High Court petition could clarify whether MPPKVVCL’s role impacts Sayaji’s obligations to Ujaas, potentially strengthening the hotel chain’s case against the insolvency petition.
The company has vowed to seek legal advice and take “appropriate steps” to protect its interests, signaling a robust defense strategy. The outcome will hinge on whether Sayaji can prove a bona fide dispute, leveraging its June 22 response and the MPPKVVCL litigation to challenge the petition’s admissibility.