2023 (9) TMI 664 - SC ORDER

Recovery of arrears of electricity dues - waterfall mechanism - insistence on on payment of arrears, for grant of an electricity connection can be done or not - overriding effect of IBC - Section 53 of the Code - HELD THAT:- The electricity connection, applied for or revival sought by the successful resolution applicant is not an asset or property.

The observations from Embassy Property Developments Private Limited [2019 (12) TMI 188 - SUPREME COURT] would confer jurisdiction on the tribunal constituted under the Code insofar as the appellant – Southern Power Distribution Company of Andhra Pradesh Limited is insisting on payment of the dues of the corporate debtor for restoration/grant of the electricity connection. The dues of the corporate debtor have to be paid in the manner prescribed in the resolution plan, as approved by the adjudicating authority. The resolution plan is approved when it is in accord with the provision of the Code. Thus, the issue of corporate debtor dues falls within the fold of the phrase ‘arising out of or in relation to insolvency resolution’ under section 60(5)(c) of the Code.

There are no good ground and reason to interfere with the impugned judgment(s)/order(s) and hence, the present appeals are dismissed.