Home Case Index All Cases Insolvency and Bankruptcy Insolvency and Bankruptcy + HC Insolvency and Bankruptcy - 2022 (5) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (5) TMI 208 - HC - Insolvency and BankruptcyPrayer for immediate restoration of the petitioner’s electricity supply - Section 238 of the IBC - dues of electricity supply to be cleared -HELD THAT:- In the present case, there does not arise any question of the power purchase agreement itself being terminated. Section 238 of the IBC clearly provides that the provisions of the said Act 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 - In the present case, admittedly, the disconnection of the electricity supply of the petitioner no. 1 took place prior to the commencement of the CIRP. Section 56 further provides that the electricity supply may be discontinued “until such charge or other sum, together with any expenses incurred by him in cutting off and reconnecting the supply, are paid” but no longer. The expression “such charge” refers to the first part of the section which relates the charge to the time of disconnection. Insofar as the electricity charges and disconnection charges are concerned, those obviously refer to the juncture of disconnection. However, only the reconnection charges, by definition, are incurred at the time of restoration of connection. This is not a case of ouster of the powers of the licensee conferred by the 2003 Act. Even if such powers under Section 56 of the 2003 Act remain intact, those become illusory in view of the dues themselves having been extinguished on the approval of the Resolution Plan, by independent operation of the IBC. Thus, even if the DVC retains its powers to recover debts and/or withhold electricity supply till the dues are cleared, there remain no dues to be cleared, since all pre- CIRP debts of the petitioner no.1-company, that is, the successful resolution applicant stand extinguished - the DVC acted without jurisdiction and de hors the law in further withholding the electricity supply of the petitioner no.1. The Damodar Valley Corporation (Respondent no. 1) are directed to restore the electricity supply of the writ petitioner no. 1-company at the earliest, positively within four weeks from date, subject to payment of the reconnection charges by the petitioner no. 1 - application allowed.
|