The New Delhi bench of the National Company Law Appellate Tribunal( NCLAT ) in the matter of Tata Power Western Odisha Distribution Limited (TPWODL) directed to consider service connection application without insisting on making payment of arrears before the date of Resolution Plan approval.
On an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 against the Jagannath Sponge Private Limited, Corporate Insolvency Resolution Process (CIRP ) was initiated vide Order dated 20th April 2019 of the Adjudicating Authority.
The Resolution Plan was submitted in the CIRP of the Corporate Debtor by one M/s Omkara Asset Reconstruction Company which plan was approved by the Adjudicating Authority vide Order dated 06th August 2021. The Appellant was informed that Resolution Plan has been approved by the Adjudicating Authority. The Appellant challenged the Order which Appeal was withdrawn by the Appellant on 25th November, 2022.
The Respondent requested the Appellant to supply electricity with CD 550KVA to its units. The Appellant informed the Respondent of outstanding arrears of Electricity dues amounting to Rs. 13,46,19,931/-.
The 2nd Respondent was directed to consider the service connection application of the applicant submitted by the successful resolution applicant or any other person on its behalf, by the code/regulation without insisting to make any payment/arrears in whatever nature payable by the corporate debtor before 06.08.2021.
The Appellant contended that electricity dues of the Appellant required to be paid before Electricity Connection can be given to the Respondent. It was evident that the Appellant did not file any claim of its Pre-CIRP dues of Rs. 13,46,19,931/-.
A coram comprising Justice Ashok Bhushan, Chairperson and Barun Mitra, Member (Technical) observed that the Adjudicating Authority while approving the Plan had already issued directions that Electricity Distribution Companies shall not raise any demand concerning the past dues.
The NCLAT upheld the direction issued by the Adjudicating Authority by the Impugned Order directing the Appellant to consider the service connection application of the Applicant by the Code/Regulation without insisting on making any payment of arrears before the date of plan approval. The Appeal got dismissed.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
