TMI Blog2015 (3) TMI 508X X X X Extracts X X X X X X X X Extracts X X X X ..... e made available to the individual unit, as in the case of the factory in question. The Official Liquidator (OL) shall go into these rival contentions and decide the issue having regard to the submissions made as to whether any apportionment is to be made between the various respondents and if so, to what extent. -The appeal is allowed in the above terms. The PSPCL shall file its comprehensive claim with respect to the amounts to be paid for the disputed period i.e. January, 2009 to January, 2013 within six weeks from today, before the official liquidator. - CO. APP. 23/2013, CM APPL. 5115/2013 - - - Dated:- 2-3-2015 - S. Ravindra Bhat And R. K. Gauba,JJ. For the Appellant : Ms. Tara V. Ganju, Advocate. For the Respondents : Mr. Prashanto Chandra Sen, Ms. Ankita Salkia and Ms. Anushruti, Advocates for R-1. Mr. Abhinit Das, Advocate for R-2. Mr. Jay Savla, Ms. Amrita Mishra and Mrs. Ankita Jain, Advocates for R-5. ORDER Mr. Justice S. Ravindra Bhat (Open Court) 1. The present appeal is directed against the judgment and order of the Ld. Company Judge in Company Petition No. 204/2003. The appellant Punjab State Power Corporation Limited (hereinafter referred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ken away to Sri Lanka; at the same time the Court held that CBIL was entitled to a refund of certain amount by financial institutions along with interest upon the re-installation of the equipments in operational state. Counsel for CBIL and PSPCL highlight different parts of the same order; whereas CBIL heavily relies on Para 46 of that judgment; PSPCL, on the other hand, relies on Para 44 and 45 of the same judgment. 4. In the background of these facts, when the impugned order was made, the Company Judge apparently considered the status of various amounts due to determine which of that fell within description of statutory dues so as to merit treatment under Sections 529 and 529A of the Companies Act, 1956. It is these directions which the PSPCL is aggrieved by. 5. Counsel for the appellant urges that the impugned order is in error of law in that, it treats the dues payable to PSPCL on the same footing as those recoverable by secured creditors. Counsel argues that by virtue of Section 476 of the Companies Act, the Company Court, (in the event of insufficiency of assets which to satisfy the liabilities) is empowered to make an order of the payment out of the assets, of costs, c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which it sought restoration - which was done in January 2009. This Court does not propose to deal with the nature of the expenses and as to the apportionment of such liability, except to notice that CBIL s admitted dues were spelt out in the order dated 20.12.2010; they were limited upto 15.09.2008/16.10.2008 then. The factual dispute is as to what should be the amount payable by CBIL, and if not paid, what ought to be the consequences. However, in view of the final order this court proposes, it would not be appropriate to express any opinion on this. 9. To decide the main issue i.e. the status of the electricity dues, it would be necessary to notice the relevant provisions. Section 476 of the Companies Act reads as follows:- 476. Power to order costs. The Court may, in the event of the assets being insufficient to satisfy the liabilities, make an order for the payment out of the assets, of the costs, charges and expenses incurred in the winding up, in such order of priority inter se as the Court thinks just. Rule 338 of the Companies (Court) Rules 1959 reads as follows: 338. Cost and expenses payable out of the assets in a winding-up by the Court. (1) The assets of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... referential payments. Section 529A(1)(b) states that the debts due to the secured creditor to the extent that they rank under Section 529(1)(c) pari passu with workmen s dues would be payable in full. The ruling in M/s. Voltas Ltd. v. Allwyn Auto Ltd. (supra) clarified that clause 529(a) would apply only to the extent that it deals with secured debts and that it would not operate with respect to expenses which is properly the subject matter of Section 476. In Re: U.P. State Cement Corporation Ltd. (supra), the Allahabad High Court had the occasion to deal with electricity dues; the court stated as follows:- The directions to continue to supply electricity as such were issued for effective liquidation of the company (in liquidation) and for proper and smooth sale and transfer of the assets to the purchaser. The Court cannot foresee a situation, which may have arisen in the long process of liquidation in refusing to provide basic amenities of the life to the workmen. The continuous supply of the electricity on the residential accommodations provided to the workmen was absolutely essential for effective liquidation of the company (in liquidation) and thus these charges can be incl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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