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2020 (12) TMI 247 - Tri - Insolvency and BankruptcyRestoration of electricity connections (i) HT Service No. 328 and (ii) HT Service No. 375 issued to M/s. Kalpatru Steel Rolling Mills Ltd. without insisting upon for payment of any past dues and without insisting for any fresh security deposit from the Resolution Applicant - power dues arose before CIRP period - to be paid by the Corporate Debtor/Resolution Applicant to SPDCL or not - HELD THAT:- In IBC, there will be two outcomes, either (1) resolving the company liabilities and give fresh lease of life to company making it free from the past baggage or (2) dissolving company after liquidation of its assets. In both the cases, either giving new life or winding up of a company - either way liabilities of a Company once for all will be determined. So to give such kind of determination, a company cannot be left over with past liabilities, therefore after approval of the Resolution to the company u/s 31 of the Code, the Resolution in respect to the past dues will remain binding over all the stakeholders falling u/s 31 of the Code. So, once plan is approved, the parties upon which the plan is binding, cannot rake up past liabilities by invoking law that is inconsistent with the provisions of the Code - SPDCL cannot make its claim after plan has been approved. Restoration of power supply - HELD THAT:- Since power was disconnected somewhere in 2013 -several years before initiation of CIRP proceedings against this company, the Applicant cannot say that the Resolution Applicant is entitled to restoration of connection of HT service No. 328 and HT service No. 375 of the corporate debtor without making payment of security deposit, because security deposit is a precondition to sanction of High Tension power connection to Industries. Without making such security deposit, giving HT Connection will become in violation of Electricity Act, tomorrow if any problem comes, that security deposit can meet that eventuality provided deposit is there. It cannot be assumed that once plan is approved, corporate debtor is free to violate the laws in existence and this Authority shall grant reliefs blindfolded without looking at noncompliance of other laws. Moreover waiver of past liabilities will not tantamount to freeing the Resolution Applicant from following other laws after approval of plan. Moreover, it is not the case of the applicant that security deposit is still lying with the Department. Waiver is limited to past liabilities, assuming if any concession is granted by this Authority while approving the plan, such concession will come into force to the extent permissible under other laws. It cannot be said that if HT connections are not given, ongoing business will suffer. Here use of power is not something like water and light that is required to have living in the world. It is a business that consumes huge power supply like any other power intensive industry, that being so, unless it is bought like any other raw material, it cannot have manufacturing. The Applicant tried to hold out that electricity is essential part of the Resolution, therefore HT connections shall be restored without being insisted upon to pay security deposit, but one thing the applicant has to understand is, the CIRP period and moratorium ends with the approval of the plan u/s 31 of the Code and the nature of power connection sought in this case does not fall within the category of essential supplies because the usage of power in the industry is not for getting light, which is considered as essential supply to modern living - Thus, it cannot therefore be said that it is like any other renewal approval taken from various departments. It is part of the business, the only difference is this power supply business in some places rests with governments, in some places with private industries. Application disposed off.
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