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2019 (5) TMI 1936 - AT - Insolvency and BankruptcySeeking direction to release the attached property of Raman Ispat Private Limited (Corporate Debtor) attached by the Appellant - issuing direction to the Appellant for submitting their claims to the Liquidator of the Corporate Debtor appointed under Section 33 of the Insolvency and Bankruptcy Code, 2016 - HELD THAT:- The Electricity Act, 2003 was enacted and came into force w.e.f. 26th May, 2003 when the I&B Code was not in existence - The decision of the Hon’ble Supreme Court in Gujarat Urja Vikas Nigam Ltd. vs. Essar Power Ltd. [2008 (3) TMI 654 - SUPREME COURT] was also a decision prior to the I&B Code and related to the Electricity Act, 2003 wherein the Hon’ble Supreme Court held that the Electricity Act, 2003 will have overriding effect on the Arbitration and Conciliation Act, 1996. In view of Section 238 of the I&B Code, the I&B Code will have overriding effect on all laws which are for the time being in force, including the Electricity Act, 2003 and Rules and Regulations framed thereunder - The I&B Code being a subsequent Act of parliament, the Electricity Act, 2003 cannot override any provisions of the I&B Code. Section 238 of the I&B Code which is a subsequent parliamentarian law, which talks of overriding effect on all existing laws, therefore, it is held that the I&B Code will have overriding effect on the Electricity Act, 2003, if any of the provisions of the Electricity Act, 2003 is inconsistent with the provisions of the I&B Code - As per sub-section (5) of Section 33, when a liquidation order has been passed, no suit or other legal proceeding can be instituted by or against the Corporate Debtor. Though, a suit or other legal proceeding may be instituted by the liquidator, on behalf of the Corporate Debtor with the prior approval of the Adjudicating Authority. If there is any amount due to any creditor, he can file claim before the Liquidator who is required to verify the claims under Clause (a) of sub-section (1) of Section 35 and thereafter, on consolidation of claims under Section 38. After verification of claims under Section 39, it is the Liquidator who is entitled to admit or reject the claim under Section 40 - the District Collector cannot initiate proceeding for any outstanding dues for supply of electrical energy nor can auction movable and immovable properties. Though it is open to the Electricity Authority of the Collector to file claim before the Liquidator. Appeal dismissed.
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