TMI Blog2019 (5) TMI 1936X X X X Extracts X X X X X X X X Extracts X X X X ..... g a subsequent Act of parliament, the Electricity Act, 2003 cannot override any provisions of the I B Code. Section 238 of the I B Code which is a subsequent parliamentarian law, which talks of overriding effect on all existing laws, therefore, it is held that the I B Code will have overriding effect on the Electricity Act, 2003, if any of the provisions of the Electricity Act, 2003 is inconsistent with the provisions of the I B Code - As per sub-section (5) of Section 33, when a liquidation order has been passed, no suit or other legal proceeding can be instituted by or against the Corporate Debtor. Though, a suit or other legal proceeding may be instituted by the liquidator, on behalf of the Corporate Debtor with the prior approval of the Adjudicating Authority. If there is any amount due to any creditor, he can file claim before the Liquidator who is required to verify the claims under Clause (a) of sub-section (1) of Section 35 and thereafter, on consolidation of claims under Section 38. After verification of claims under Section 39, it is the Liquidator who is entitled to admit or reject the claim under Section 40 - the District Collector cannot initiate proceeding for a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be cleared and in the alternative, the deed to agreements/sale will specifically mention the outstanding dues and the methods of its payment. 4. The Electricity Distribution Urban Division 1, Muzaffarnagar raised bills for supply of electrical energy to the Corporate Debtor from time to time which Corporate Debtor was unable to pay due to losses suffered by the Corporate Debtor . As per the final bill dated 27th January 2017, total arrears work out to Rs. 4,32,33,883/-. Since the Appellant- Paschimanchal Vidyut Vitran Nigam Limited has provided electrical energy to the Corporate Debtor , which attached the properties of the Corporate Debtor vide its Order No. 1048 dated 12th January 2016 and Tehsildar, Muzaffarnagar vide its order 1423F dated 23rd January, 2016 and also prohibited the transfer of property by sale, donation or any other mode and create charge due to outstanding dues for supply of electrical energy by the Appellant- Paschimanchal Vidyut Vitran Nigam Limited . 5. Against the Corporate Debtor , liquidation order has been passed under Section 33 and the liquidator s duty is to form liquidation estate of the Corporate Debtor in terms of Section 36(1) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... harmaceuticals Ltd.─ (2011) 10 SCC 727 to suggest that the Employees Provident Fund and the Miscellaneous Provisions Act, 1952 will override on the provisions of the Companies Act, 1956 . 13. Sections 173 and 174 of the Electricity Act, 2003 read as follows: 173. Inconsistency in laws─ Nothing contained in this Act or any rule or regulation made thereunder or any instrument having effect by virtue of this Act, rule or regulation shall have effect in so far as it is inconsistent with any other provisions of the Consumer Protection Act, 1986 or the Atomic Energy Act, 1962 or the Railways Act, 1989. 174. Act to have overriding effect─ Save as otherwise provided in section 173, the provisions of thus Act shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force or in any instrument having effect by virtue of any law other than this Act. 14. The Electricity Act, 2003 was enacted and came into force w.e.f. 26th May, 2003 when the I B Code was not in existence. The decision of the Hon ble Supreme Court in Gujarat Urja Vikas Nigam Ltd. vs. Essar Power Ltd. (Supra) was also a decisio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with the prior approval of the Adjudicating Authority. 23. The provisions of sub-section (5) of Section 33 shall not apply to legal proceedings in relation to such transactions as may be notified by the Central Government in consultation with any financial sector regulator, as quoted hereunder: 33. Initiation of liquidation. ─ .(5) Subject to section 52, when a liquidation order has been passed, no suit or other legal proceeding shall be instituted by or against the corporate debtor: Provided that a suit or other legal proceeding may be instituted by the liquidator, on behalf of the corporate debtor, with the prior approval of the Adjudicating Authority. (6) The provisions of sub-section (5) shall not apply to legal proceedings in relation to such transactions as may be notified by the Central Government in consultation with any financial sector regulator. 24. Section 35(1) deals with powers and duties of liquidator . Under clause (d) therein, the Liquidator is required to take such measures to protect and preserve the assets and properties of the Corporate Debtor as it considers necessary. Under clause (e) of Section 35(1), the Liquidator is duty bound ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
