Innoventive Industries Ltd vs Maharashtra State Electricity ...
- CitationCompany Appeal (AT) (Insolvency) No. 156 of 2017
Ratio decidendi
The rule this decision rests on
The Resolution Professional of a corporate debtor under moratorium may be permitted to pay, out of the corporate debtor's assets, charges for electricity consumed after the commencement of the moratorium in order to keep the company a going concern, and the supplier may be directed to restore the connection on such payment; the corporate debtor and its Resolution Professional are not liable for dues relating to the period before the moratorium order, those being claims to be considered at the time of payment to creditors under the resolution plan.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Innoventive Industries Ltd. ...Appellant
Versus
Maharashtra State Electricity Distribution Company Ltd. ...Respondent
Present:
For Appellant : Ms. Misha and Shri Vijayant Paliwal, Advocates
For Respondent : Shri Nirav Shah, Advocate
ORDER
06.10.2017 Learned counsel appeared on behalf of the respondent -
Maharashtra State Electricity Distribution Company Limited submits that in
view of the earlier order dated 21st September, 2017, respondent is inclined to
restore the electrical connection of the 'Corporate Debtor', if the amount towards
consumption of electricity due since the date of moratorium (17.01.2017) till
September, 2017 is paid.
2. In the circumstances, we allow the (Interim) Resolution Professional (IRP)
to pay the charges due to respondent towards consumption of electricity since
the date of moratorium i.e. 17th January, 2017 till September, 2017. If such
amount is deposited, the respondent will restore the electrical connection within
48 hours from the date of receipt of amount to ensure that the company remains on going and functional. On such restoration of such electricity, the IRP on
behalf of the 'Corporate Debtor' will also pay month to month charges towards
consumption of electricity failing which it will be open to the respondent -
Maharashtra State Electricity Distribution Company Limited to take appropriate
steps.
3. We make it clear that the Corporate Debtor or Resolution Professional are
not liable to pay the dues of period prior to passing of order of moratorium, which
can be considered at the time of payment of dues to the creditors (Resolution
Plan).
4. The appeals stands disposed of with the aforesaid observations and
directions.
[Justice S.J. Mukhopadhaya] Chairperson
[ Justice A.I.S. Cheema ] [ Balvinder Singh ] Member (Judicial) Member (Technical)
/ns/
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