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2022 (3) TMI 999 - HC - Insolvency and BankruptcyRestoration of their electricity connection - disconnection by the respondent-distribution licensee on November 29, 2014 because of non-payment of electricity dues by the petitioner - HELD THAT:- Upon a consideration of the law on the subject, it is amply clear that Section 56 of the Electricity Act, 2003 confers power on the licensee to cut off the supply of electricity and for that purpose cut off or disconnect any electric supply line or other works being the property of such license through which electricity may have been supplied, transmitted, distributed or wheeled and may discontinue the supply until such charge or other sum, together with any expenses incurred by him in cutting off and reconnecting the supply, are paid. The IBC, in its scheme, contemplates a Corporate Insolvency Resolution Proceeding (CIRP), where a resolution plan is submitted which, after passing through the scrutiny of the Resolution Professional and Committee of Creditors, is submitted to the Adjudicating Authority (NCLT). Under Section 31 (1) of the IBC, upon approval by the Adjudicating Authority, the resolution plan becomes binding on the Corporate Debtor and its employees, members, creditors, guarantors and other stakeholders involved in the resolution plan - Section 238 of the IBC stipulates that the provisions of the Code shall have effect, notwithstanding anything inconsistent therewith contained in any other law for the time being in force or any instrument having effect by virtue of any such law. There cannot be any doubt that the WBSEDCL, discharging the function of the State, comes within the purview of ‘State’ under Article 12 of the Constitution of India. The State Government is the executive authority through which the State primarily discharges its functions under the law. Hence, dues payable to the WBSEDCL squarely fall within the ambit of “operational debt” as defined under the IBC. Hence, the provisions of the IBC are attracted to dues payable to the WBSEDCL - Admittedly, in the present case, the electric supply of the petitioner no. 1-company was cut off by the WBSEDCL on November 29, 2014, for non-payment of electricity charges. For restoring such connection, the licensee, under Section 56 (1) of the 2003 Act, can claim as a precondition the payment of such charge and other sum, together with any expenses incurred by the licensee in cutting off and reconnecting the supply. The only reasonable conclusion which can be reached in the instant case is that the WBSEDCL is duty-bound to restore the electric connection of the petitioner no.1-company immediately upon the petitioner no.1 making payment of reconnection charges to the WBSEDCL - direction to WBSEDCL to restore electric supply to the petitioner no. 1, subject to the petitioner no. 1 paying only the reconnection charges, as expeditiously as possible, preferably within a fortnight from after the deposit of such charges. Application allowed.
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