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2017 (12) TMI 1196 - Tri - Insolvency and BankruptcyCorporate Insolvency Resolution Process - whether Section 14(2) of the Code gives protection to the IRP not to pay for the electricity consumption charges to the Electricity Company pending completion of the CIRP? - Held that:- Section 56 of the Electricity Act, 2003 applies to every citizen of India and whole of India except the State of Jammu and Kashmir. Whoever that failed to pay the electricity consumption charges, even by the highest dignitary in India has to face the interruption of electricity supply under Section 56 of the Electricity Act, 2003. But Insolvency and Bankruptcy Code gives exemption for the Corporate Debtors undergoing CIRP for a particular period, namely the ‘moratorium period’. Therefore, Section 14(2) of the Code must prevail over Section 56 of the Electricity Act, 2003. Therefore, the electricity authorities are not entitled to disconnect the power supply to the Corporate Debtor, M/s. ABG Shipyard Limited, invoking Section 56 of the Electricity Act, 2003. It may be said that it amounts to absolving the Applicant or the Corporate Debtor from paying the electricity consumption charges. But it is not so. The Electricity Company can claim the power consumption charges as an ‘Operational Creditor’ from the assets of the Corporate Debtor on par with other operational creditors based on priorities given in the Code and the Rules and Regulations. Therefore, the Corporate Debtor or the Applicant is not absolved from paying the charges. The claim of the Corporate Debtor to pay the electricity consumption charges shall be taken into account by the Resolution Professional along with other Operational Creditors following the priorities given under the Code, Rules and Regulations. In view of the above discussion, there shall be a direction to the Dakshin Gujarat Vij Company Limited, Piplod Division Office, not to disconnect the power supply to M/s. ABG Shipyard Limited, Surat Unit, during the moratorium period. However, Dakshin Gujarat Vij Company Limited is entitled to make a claim for electricity consumption charges with the Resolution Professional and the Resolution Professional shall receive such claim, and process it along with other Operational Creditors following the priorities given in the Code, Rules and Regulations.
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