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2019 (2) TMI 1725

..... n the Escrow Account as directed by this Bench - HELD THAT:- Since the money already deposited in the Escrow Account being towards the bills raised during CIRP period, it shall be released to KSEB. Release of money lying in Escrow Account cannot be linked to the arrears already paid by the Corporate Debtor, adjustments or set-off is applicable only when mutual obligations subsisting, here no debt is payable by KSEB to the corporate debtor. Since the Escrow Account has come into existence by the order passed by this bench, once any money has come to Escrow Account towards the bills on the condition power would be supplied on deposit of bills in the Escrow Account, the RP is not at liberty to give treatment in the Resolution Plan towards the .....

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..... cation was mentioned on 29.10.2018, this Bench observed that RP deposited the dues in the Escrow Account as directed by this Bench. Thereafter it was also reported that supply has been restored. 3. Since KSEB (the Respondent) has already restored the supply basing on the orders abovementioned, we are of the view that this MA has become infructuous because the supply has been restored on the interim directions given by this Bench. 4. But for one fact we need to advert to the earlier orders directing the Resolution Professional to deposit the dues against supply of power during the period of CIRP, because on such deposit being pending deposited in Escrow Account, since Bench has held the issue of payment is subject to the outcome of this MA, .....

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..... en admitted by this Bench, KSEB counsel has made it clear that KSEB having never made any claim to treat it as operational creditor, the RP shall not make any adjustments treating as if KSEB made a claim as operational creditor before the RP and moreover for there being no relief in this application asking for adjustments except asking for restoration of power supply, therefore whatever payments already made towards dues on its own could not be now treated as money payable to the corporate debtor under the assumption that arrear payments should be treated as money returnable to the corporate debtor. KSEB counsel further says that it was paid in the ordinary course of business without any direction from any Court of Law. Now the Resolution P .....

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..... ve approved the Resolution Plan believing in whatever the Resolution Professional mentioned in the Resolution Plan as correct. The same has been approved without making any observations over whatsoever incorporated in the Resolution Plan. In view of the same, we hereupon clarify that this clause will not have any bearing over the money already paid to KSEB. 10. Since the money already deposited in the Escrow Account being towards the bills raised during CIRP period, it shall be released to KSEB. Release of money lying in Escrow Account cannot be linked to the arrears already paid by the Corporate Debtor, adjustments or set-off is applicable only when mutual obligations subsisting, here no debt is payable by KSEB to the corporate debtor. Sin .....

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