Madhya Gujrat Vij Company Ltd vs Kalptaru Alloys Pvt Ltd & Ors

Madhya Gujrat Vij Company Ltd. ...Appellant

Versus

M/s. Kalptaru Alloys Pvt. Ltd. & Ors. ...Respondents

Present:

For Appellant : Mr. Pradeep Misra and Mr. Daleep Dhyani, Advocates

For 1st Respondent: Mr. Abhishek Anand and Mr. Anant A. Pavgi, Advocates

For 2nd Respondent : Mr. Jayant Mehta, Mr. Sajal Jain and Mr. Mohit D. Ram, Advocates

For 3rd Respondent : Mr. R.P. Agrawal, Advocate

ORDER

24.09.2018 The appellant "Madhya Gujarat Vij Company Ltd.', who was

one of the 'Operational Creditor' having supplied the electric energy to the

'Corporate Debtor' has preferred this appeal under Section 61 of the Insolvency

and Bankruptcy Code, 2016 (hereinafter referred to as the 'I&B Code') against

order dated 20th March, 2018 passed by the Adjudicating Authority (National

Company Law Tribunal) Ahmedabad Bench, Ahmedabad whereby and

whereunder the 'Resolution Plan' submitted by 'Shubhmangal Exim Private

Limited' in coordination with 'M/s. Concord Biotech Limited' (Respondent No. 2 2

herein) in respect of the 'corporate insolvency resolution process' against 'M/s.

Kalptaru Alloys Pvt. Ltd.' (Corporate Debtor) has been approved.

2. Learned counsel appearing on behalf of the appellant submitted that the

impugned order was passed without notice and hearing the appellant

(Operational Creditor) but such submission cannot be accepted as there is no

requirement to issue notice to the 'Operational Creditor(s)' or any other 'creditors'

for approving a 'Resolution Plan' under Section 31 of the I&B Code, having

already approved by the 'Committee of Creditors' by majority voting share and

in absence of any violation of Section 30(2) of the I&B Code.

3. It was next contended that under the provisions of 'Gujarat Electricity

Regulatory Commission (Electricity Supply Code and related matters) Regulations,

2015', no electrical connection can be restored in favour of the 'Corporate Debtor'

till the total amount due to the Electricity Company (appellant herein) is paid.

However, such submission cannot be accepted in view of the provisions of

Section 31 of the I&B Code, which reads as follows:

"31. (1) If the Adjudicating Authority is satisfied

that the resolution plan as approved by the

committee of creditors under sub-section (4)

of section 30 meets the requirements as

referred to in sub-section (2) of section 30, it

shall by order approve the resolution plan

which shall be binding on the corporate

debtor and its employees, members,

creditors, guarantors and other

Company Appeal (AT) (Insolvency) No. 211 of 2018 3

stakeholders involved in the resolution

plan.

(2) Where the Adjudicating Authority is

satisfied that the resolution plan does not

confirm to the requirements referred to in

sub-section (1), it may, by an order, reject

the resolution plan.

(3) After the order of approval under sub-

section (1),--

(a) the moratorium order passed by the

Adjudicating Authority under section

14 shall cease to have effect; and

(b) the resolution professional shall

forward all records relating to the

conduct of the corporate insolvency

resolution process and the resolution

plan to the Board to be recorded on

its database."

From the aforesaid provision, it is clear that the 'Resolution Plan' is

binding on the 'Corporate Debtors', 'Financial Creditors', 'Operational Creditors'

and all other 'stakeholders' including 'guarantors'. The provision of Section 31

being binding on the appellant - 'Operational Creditor', in view of Section 238 of

the I&B Code, the provisions of 'Gujarat Electricity Regulatory Commission

Company Appeal (AT) (Insolvency) No. 211 of 2018 4

(Electricity Supply Code and related matters) Regulations, 2015', cannot override

the same.

4. As per the approved 'Resolution Plan' a sum of Rs. 80.80 Lakhs is payable

to the appellant (Operational Creditor). The said amount having paid by the

successful 'Resolution Applicant', the appellant in its turn is required to restore

the electricity connection of the 'Corporate Debtor'. We find no merit in this

appeal. It is accordingly dismissed. No cost.

[Justice S.J. Mukhopadhaya] Chairperson

[ Justice Bansi Lal Bhat ] Member (Judicial)

/ns/uk/

Company Appeal (AT) (Insolvency) No. 211 of 2018