North Eastern Electricity Supply ... vs Supriyo Kumar Chaudhary Resolution ...
- CitationCompany Appeal (AT) (Ins) No. 874 of 2020
Ratio decidendi
The rule this decision rests on
The Adjudicating Authority's interim directions, made to protect a corporate debtor under insolvency, do not preclude the parties from seeking further directions from that Authority on compliance; where a direction requires formalities for a load reduction to be completed, those formalities must be completed by the corporate debtor following the necessary procedure, and whether that procedure has been completed is a matter of dispute to be determined by the Adjudicating Authority rather than on appeal.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
IN THE MATTER OF: North Eastern Electricity Supply Company of Orissa Ltd.(Nesco) ...Appellant
Vs.
Supriyo Kumar Chaudhury, Resolution Professional & Anr. ...Respondents
Present: For Appellant: Mr. Hasan Murtaza, Mr. Dhirendra Sharma, Advocates Ms. Saroj K.Ray, PCS
For Respondent: Mr. Ojasa Arya, Indranil Ghosh, Mr. Palzar Moktan, Ms. Swati Dalmia, Mr. Chatterjee, Advocates for R1
ORDER
(Through Virtual Mode)
13.01.2022: This appeal has been filed against the order passed
by the Adjudicating Authority dated 26.08.2020 by which order,
the Adjudicating Authority has issued the following direction: -
"a) The Grid Corporation of Orissa
Limited, the Respondent No. 1 and the
Respondent No. 10 are directed to
accept electricity consumption charges
of the Corporate Debtor for the month of
July-August, 2020 after four weeks
Company Appeal (AT) (Ins) No. 874 of 2020 1 subject to fees/late fess/surcharges, if
any and shall not disconnect the
electricity supply for arrears of such
payment.
b. The Respondents are directed to act
in accordance with its letter dated 27th
July, 2020 and allowed the application
filed by the corporate debtor for
reduction of the contract demand charge
from 55 MVA to 35 MVA in relation to the
Jaipur plant of the corporate debtor
immediately, and in any case before the
end of this month, as indicated by the
learned counsel for the respondent."
2. Learned Counsel for the Appellant fairly submitted that in so
far as the payment of electricity dues are concerned, the Corporate
Debtor is more or less paying the dues regularly. However, he
pointed out that with regard to direction no. 2 regarding direction
of contract demand, charge of 55 MVA to 35 MVA although billing
is being done on the basis of 35 MVA but the certain formalities
Company Appeal (AT) (Ins) No. 874 of 2020 2 have not yet been complied with by the Corporate Debtor due to
which no final decision has yet been taken regarding the demand.
3. Learned Counsel for the Respondent refuted the submission
and pointed out that it was on the statement made by R-2, this
order was passed. She referred to the statement at page 62 of the
Learned Counsel for R-2 which is to the following effect:-
"The learned counsel for the
respondent submits that the
Application of the Petitioner for
reduction of contract demand charge
from 55 MVA to 35 MVA in relation to
Jaipur Plant. Is under active
consideration and it will be decided
within this month, and will be made
effective only from 01.08.2020."
4. Be that as it may, we find that the direction issued by the
Adjudicating Authority as they are issued to protect the Corporate
Debtor who was in insolvency, however, it goes without saying that
if any formalities are required to be complied with, with regard to
load reduction, the same ought to be completed by the Corporate
Company Appeal (AT) (Ins) No. 874 of 2020 3 Debtor by following the necessary procedure. We are not entering
into this Appeal as to whether the necessary procedure has been
completed or not because the parties are at dispute on the
aforesaid issue.
5. We, thus, however, of the view that it is open for both the
parties to approach the Adjudicating Authority for issuing any
further direction or application regarding compliance of direction
issued in direction(b), if they are so advised. No further order is
required, this appeal is disposed of.
[Justice Ashok Bhushan] Chairperson
[Dr. Ashok Kumar Mishra] Member (Technical)
ss/nn
Company Appeal (AT) (Ins) No. 874 of 2020 4
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