9911796707
TMI Blog2025 (1) TMI 634X X X X Extracts X X X X X X X X Extracts X X X X ..... . 2. Brief facts of the case necessary to be noticed for deciding the Appeal are: i. On an Application filed under Section 7 by the UCO Bank against the Corporate Debtor M/s. Shree Shyam Pulp and Board Mills, Corporate Insolvency Resolution Process (CIRP) commenced by Order dated 27.03.2019. No Resolution Plan having been approved in the CIRP of the Corporate Debtor, the Adjudicating Authority directed for liquidation vide Order dated 16.12.2020. ii. Liquidator made a public announcement dated 31.01.2020 inviting the claim. The Appellant filed a claim of Electricity Dues of amounting to Rs.8,43,99,407/-. iii. The Liquidator under Order passed by the Adjudicating Authority admitted the claim. In the list of stakeholders issued by Liquidator dated 18.04.2022, the claim of the Appellant to the extent of Rs.7,66,95,203/- was reflected as admitted claim. iv. Liquidator has issued several e-Auctions Notices for sale of the Assets of the Corporate Debtor as per the provisions of the Insolvency and Bankruptcy Code, 2016, (for short 'The Code or The IBC'). v. In the seventh e-Auction held on 30.07.2021, the land and building of the Corporate Debtor was sold to M/s. Shyam Baba Dev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ors.' Comp. App. (AT) (Ins.) No. 961 of 2021, which was the case of sale of a going concern, where the outstanding Electricity Dues were contractual and not statutory. 5. Learned Counsel for the Respondent No. 1 refuting the submissions of the Counsel for the Appellant submits that the Appellant had filed claim in the liquidation proceeding which was admitted by the Liquidator. Appellant is entitled for treatment of its dues as per Section 53 of the IBC. Appellant's dues having been dealt in the liquidation process as per the IBC, Appellant cannot insist pre-CIRP dues to be paid by the R-1 before electricity connection is energised/restored. The Successful Auction Purchaser has paid the entire sale consideration of 19.86 Crores. The NCLT has rightly relied on the Judgments of this Tribunal which has been referred to in the Order. Learned Counsel for the Respondent further submits that issue is now well settled by the Judgment of this Tribunal and Hon'ble Supreme Court. Learned Counsel for the Respondent also relies on a recent Judgment of this Tribunal in the matter of 'M/s. Yarn Sales Corporation through Sh. Rajesh Kumar, Partner' Vs. 'Punjab State Power Corporation Ltd. & A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uidator has also in the Status Report has given details of the distribution of the amount as per Section 53. Paragraph 14 of the Status Report gives the details of the amount distributed to various stakeholders as per Section 53. Para 14 of the Status Report is as follows: "14. That it is pertinent to mention here that the liquidator has strictly followed the waterfall mechanism as per Section 53 in distributing the realised amount. The distribution as per Section 53 is listed hereunder: TOTAL AMOUNT DISTRIBUTED IN LIQUIDATION AS PER SECTION 53 IS AS UNDER : Sl. No. Stakeholders under section 53 (1) Amount Admitted (Rs.) Amount Distributed (Rs.) 1 (a) CIRP Costs Paid 81,84,170 2 (a) Liquidation Costs Paid 2,09,98,318 3 (b) (i) 4 (b) (ii) 15,89,20,27,216 55,04,10,554 5 (c) 6 (d) 5,00,77,073 0 7 (e) (i) 8 (e) (ii) 9 (f) 35,60,60,629 (Includes an amount of Rs.7,66,95,203/- payable to Uttrakhand Power Corporation Limited) 0 10 (g) 11 (h) 10. Further, in Para 15 of the Status Report, details of the payment made to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as opposed by the Damodar Valley Corporation. Adjudicating Authority rejected the Application against which the Appeal was filed. One of the questions framed in the Appeal was as to whether Successful Auction Purchaser was entitled for the reliefs claimed. In Paragraph 37 of the Judgment of this Tribunal, reliance was placed on the two Judgments of the Hon'ble Supreme Court, which, according to this Tribunal fully covers the issue. Paragraphs 37 and 38 of the Judgment following has been stated: "37. The issues raised in the present Appeal are fully covered in favour of the Appellant by a recent judgment of the Hon'ble Supreme Court dated 11.09.2023 in Civil Appeal No.5556 of 2023- "Tata Power Western Odisha Distribution Limited (TPWODL) & Anr. vs. Jagannath Sponge Private Limited". Appellant in the above case was also insisting for payment of arrears of electricity dues. The Hon'ble Supreme Court relied on the earlier judgment of the Hon'ble Supreme Court in "Paschimanchal Vidyut Vitran Nigam Ltd. vs. Raman Ispat Private Limited & Ors.- 2023 SCC Online SC 842" and has also noted the judgment of the Hon'ble Supreme Court in "Embassy Property Developments Pvt. Ltd." and distinguish ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bed in the resolution plan, as approved by the adjudicating authority. The resolution plan is approved when it is in accord with the provision of the Code. Thus, the issue of corporate debtor's dues falls within the fold of the phrase 'arising out of or in relation to insolvency resolution' under section 60(5)(c) of the Code. Therefore, we do not find any good ground and reason to interfere with the impugned judgment(s)/order(s) and hence, the present appeals are dismissed. Pending application(s), if any, shall stand disposed of." 38. In view of the law laid down by the Hon'ble Supreme Court in "Tata Power Western Odisha Distribution Limited" (supra), submission advanced on behalf of the Respondent- Damodar Valley Corporation cannot be accepted. The Respondent cannot insist that unless the arrears of the electricity dues which dues were payable by the Corporate Debtor prior to disconnection are paid by the Appellant only then communication can be issued. The stand taken by the Respondent is contrary to the law laid down by this Tribunal as well as the Hon'ble Supreme Court as noted above. 12. Learned Counsel for the Appellant has placed reliance on the Judgment of the Hon'bl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2721/2014 dated 5- 8-2014, the mortgager has sold the property to the extent of 204.75 sq. yd. to the Gramapanchayat Executive Officer, Ramapally for worth of Rs. 2,48,000. Details outstanding of dues of local Government (property tax. water sewerage, electricity bills, etc.) Rs. 83,17,152 (Rupees eighty-three lakhs seventeen thousand one hundred fifty-two only) Reserve price of property For Property No. 1: Rs. 77,63,000 For Property No. 2 Reserve price: Rs 5,83,37,000 (Rupees five crores eightythree lakhs thirtyseven thousand only) Total 28 nos. of machineries items reserve price: Rs. 3,25,28,000 (Rupees three crores twentyfive lakhs twentyeight thousand only) Terms and conditions 21. The successful bidder shall bear the stamp duties, charges including those of sale certificate, registration charges, all statutory dues payable to the Central/State Government, taxes and rates and outgoing, both existing and future relating to the properties. 24. The property is sold in "AS IS WHERE IS, WHAT IS THERE IS AND WITHOUT ANY RECOURSE BASIS" in all respects and subject to statutory dues, if any. The intending bidders should make discrete enquiry as regards any claim, charges/enc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... & Anr.' (Supra). There can be no dispute to the proposition laid down by the Hon'ble Supreme Court in 'K.C. Ninan' (Supra). It is however relevant to notice that Judgment of the Hon'ble Supreme Court in 'K.C. Ninan' (Supra) was not in reference to liquidation proceeding where electricity authority has filed any claim. The above Judgment thus is not attracted in the facts of the present case and does not help the Appellant in any manner. The Judgment of the Hon'ble Supreme Court in the matter of 'Paschimanchal Vidyut Virtan Nigam Limited' Vs. 'Raman Ispat Private Limited & Ors.', reported in (2023) SCC Online SC 842 and in the matter of 'Tata Power Western Odisha Distribution Ltd.' Vs. 'Jagannath Sponge Private Limited' reported in Civil Appeal No. 5556/2023, as noted supra fully covers the issue. 14. Learned Counsel for the Respondent has also placed reliance on the recent Judgment of this Tribunal in 'M/s. Yarn Sales Corporation through Sh. Rajesh Kumar, Partner' (Supra) where similar issue was considered and answered by this Tribunal. This Tribunal in the above case has relied on 'Chinar Steel Segments Centre Pvt. Ltd.' (Supra). Judgment of this Tribunal in 'M/s. Yarn Sales Cor ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
