TMI Blog2019 (8) TMI 784X X X X Extracts X X X X X X X X Extracts X X X X ..... the affairs of Rl. As to Public Sector Undertaking, when a person is pitted against public institution, public interest will always prevail over the interest of a private person. In any event, it is only a discussion over the effect of an order against public institution. This concept will become an issue if order does not violate the rights of adverse party. This Bench has no jurisdiction to pass any orders in respect to the reliefs sought by the Applicant, henceforth this application is hereby dismissed in limine. - MA/456/2019 AND IBA/92/2019 - - - Dated:- 15-5-2019 - MR B.S.V. PRAKAKASH KUMAR, MEMBER (JUDICIAL) For The Applicant : Mr Vinod Kumar, Advocate For The Corporate Debtor : Mr Abraham Jacob, Advocate For The Respondent : Mr Sai Srujan Tayi, Advocate, Mr Giridhar Sai, Advocate And Pooja, Advocate ORDER It is MA filed u/s 60(5) of the Insolvency and Bankruptcy Code, 2016 by the Resolution Professional discharging the functions under the Corporate Insolvency and Resolution Process in respect to the Corporate Debtor Company namely Sai Regency Power Corporation Private ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n under IBC by initiating CIRP against the corporate debtor, then IRP taking stock of the situation, requested ONGC not to discontinue supply of gas to an ongoing concern, but whereas, according to the applicant, Rl again on 02.05.2019 and 06.05.2019 reiterated demand of mandatory payment of GDU charges for gas supply with effect from 01.05.2019 and deposit of ₹ 10,10,61,313 towards payment of Security in lieu of Letter of Credit. As the corporate debtor failed to comply with the same, on 10.05.2019 Rl disconnected gas supply to the Corporate Debtor, as a result, the operations of the debtor company have come to halt, therefore the applicant filed this application u/s 60 (5) of IBC referring to various judgements without referring under what provision of law of IBC, the applicant is entitled to the relief sought. 3. But whereas at the time of arguing, the counsel has submitted that supply of natural gas by R1 is essential for production of electricity by the Corporate Debtor company, therefore it is essential for a direction against Rl to supply gas to the Corporate debtor which would maintain the Corporate Debtor as going concern and maximise the value of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rson to file application, but mere having procedural jurisdiction to file an application will not entitle a person to file application unless subject matter jurisdiction is conferred upon the parties. It will come to parties upon violation of right or interest of them. The applicant, as I said earlier, has not shown violation of the rights of the debtor either under this Code or under any other provision of Law. 9. To make it further clear, it is necessary to visit the text of Section 14 (2) of the Code which is as follows: Section 14 (2): The supply of essential goods or services to the Corporate Debtor as may be specified shall not be terminated or suspended or interrupted during the moratorium period. 10. Since it has been specified in Regulation 32 of the CIRP Regulations what is meant by supply of the essential goods and services, the text is hereby produced, which is as follows: Regulation 32: The essential goods and services referred to in section 14(2) shall mean- (1) electricity; (2) water; (3) telecommunication services; and (4) info ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inflict ONGC to incur loss by supplying Gas to it that has already been not paying for the gas supplied to it. When it is clear that supply of gas by Rl to the Corporate Debtor does not fall within the ambit of any of the provisions of Section 14 of the Code, this Bench has no right to interfere with the rights and interests of this Public Sector Undertaking or any other person because such jurisdiction has not been conferred upon this Authority to interfere with the affairs of Rl. 15. This Authority is always conscious of the fact that it is not a Court to pass any order exercising its jurisdiction that is not prohibited. It being a jurisdiction akin to a Tribunal limited to the jurisdiction conferred upon it, it cannot invoke jurisdiction transgressing the limits conferred upon it. 16. Moreover Section 14 being a prohibitive section effecting the rights and interests of the parties which are otherwise entitled to take action against corporate debtor who has failed to pay for the supplies made and to stop supplies to the Corporate Debtor in breach of terms and conditions as per law in force, this legislation cannot be read as beneficial legislation in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... laws, Companies Act, SICA, SARFAESI Act, and other laws scheduled in the Code to cut down the time-lag causing distance between cause and effect in resolution of disputes between debtors and creditors. 23. In the same breadth, it has also reasoned that this consolidation is to decide this unending saga of disputes in respect to a company that failed to clear the debts within the timelines carved out in this Code, so that it will maximise the value of assets. The real meaning of all this consolidation is to say that realisation of a rupee today is always commercially prudent and value fetching instead of keep sitting fingers crossed hoping for tomorrow. That's all it is. 24. The intent of consolidation is for maximisation of value and that maximisation is achieved if the Code is implemented in the time lines mandated under this Code. The word resolution used in the second sentence of the preamble is in respect to resolution of disputes; I don't think it is used referring it to Resolution Plan filed by Resolution Applicant. I believe that Resolution Plan falls within the concept of reorganisation of a corporate person mentioned in the first sente ..... X X X X Extracts X X X X X X X X Extracts X X X X
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