In the matter of Bhaskar Shrachi Alloys Limited
- CitationIA(I.B.C)-984 & 1054(KB)2021 in C.P. (IB)-701(KB)2019
Ratio decidendi
The rule this decision rests on
The application is not maintainable before the Adjudicating Authority where the corporate debtor's electricity supply was disconnected for non-payment of dues before the corporate insolvency resolution process commenced; a disconnection that predates the initiation of CIRP cannot be challenged or reversed under the IBC proceedings, whereas a disconnection occurring on or after initiation of CIRP would be treated differently.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
ATTENDANCE-CUM-ORDER SHEET OF THE HEARING ON 01ST SEPTEMBER,2022, 10:30 A.M DAMODARVALLEYCORPORATION VS IN THE MATTER OF BHASKARSARCHIALLOYSLIMITED IBCUNDERSEC9 UNDER SECTION
Counsel/ Authorised Representative appeared physically /through video conference: Mr. Mainak Bose, Sr. Adv. :For Applicant in IA 984/22 Mr. Rahul Auddy, Adv. : Mr. Aditya Gooptu, Adv. : Mr. Jaydip Kar, Sr. Adv. :For Damodar Valley Corporation Mr. Shaunak Mitra, Adv. : Mr. Deepak Agarwal, Adv. : Mr. Prasun Mukherjee, Adv. : Ms.Shruti Singhania, CS :For ErstwhileLiquidator OR DER IA(I.B.C)/984(KB)2021 1. Ld. Counsel onbothsides present. 2. Theinstant application has beenfiled bytheapplicant seeking- (a) The communication of the Respondent no. 2 dated September 3, 2021 be set aside and/orquashed. (b) Direct the Respondent nos. 2 to either restore or grant fresh connection of electricity tothe factory premises ofBhaskar Sachi Alloys Limited.
3. It is noted that the electricity connection of the Corporate Debtor was disconnected on 11thAugust, 2017.Whereas theC.I.R.P.started on27thSeptember, 2019.
KundanKr.
4. This Tribunal faced with an identical situation passed an order on 16th February, 2022 paragraph 48oftheorder isreproduced hereinafter:- “In these circumstances, the question of maintainability is decided against the applicant. The application of the applicant is not maintainable before the NCLT because the electricity had been disconnected long before the CIRP actually started, for reason of non-payment of the outstanding dues. The CIRP process was initiated long thereafter. If the electricity had been disconnected on initiation of CIRP, then the position would have been different.” 5. In these circumstances, question of maintainability is decided against the applicant. We are oftheviewthis application being similarin nature isliabletobe rejected. 6. In view of the earlier decision of this Adjudicating Authority. Therefore, this IA is hereby rejected as infructuous.
IA(I.B.C)/1054(KB)2021 7. This IA is a demurer application for IA(IBC)/984/KB/2021 since the IA has been rejected as abovethis application have become infructuous and isdisposed as such.
BalrajJoshi RohitKapoor Member(Technical) Member(Judicial)
KundanKr.
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