Uttrakhand Power Corporation Ltd vs M/S. Ang Industries Ltd

Uttrakhand Power Corporation Ltd. ...Appellant

Vs.

M/s. ANG Industries Ltd. ...Respondent

Present: For Appellant: - Shri Pradeep Misra, Advocate

For Respondent:- Shri Ishaan Madan and Ms. Sakshee Sharma, Advocates

ORDER

24.01.2018- The appellant - Uttarakhand Power Corporation Ltd. was

supplying electricity to the Corporate Debtor - M/s. ANG Industries Ltd. Due

to failure of payment, the electricity supply was disconnected on 28th August,

2017. In the meantime, an application for Insolvency Resolution Process

under Section 10 was filed by the Corporate Applicant wherein the

Adjudicating Authority (National Company Law Tribunal), New Delhi Bench

passed order on 31st August, 2017 admitting the application and imposed

moratorium in terms of the Insolvency and Bankruptcy Code, 2016. The

Insolvency Resolution Professional was supposed to ensure that the company

remains on-going, therefore, he filed an application for restoration of

electricity, which was allowed by the Adjudicating Authority by the impugned

order dated 9th October, 2017. The appellant - Uttarakhand Power

Corporation Ltd. restored electricity on 12th October, 2017 but having not paid 2

the outstanding dues challenged the impugned order dated 9th October, 2017

in this appeal.

2. We have heard the learned counsel appearing on behalf of the appellant

and the learned counsel for the Insolvency Resolution Professional.

3. Taking into consideration the fact that the order of moratorium has

been passed by the Adjudicating Authority on 31st August, 2017, we are of

the view that the appellant - Uttarakhand Power Corporation Ltd. cannot

recover any amount due for the period prior to 31st August, 2017 though it

will be open the appellant to submit the claim before the Resolution

Professional. Insofar as the current charges are concerned, we hold that the

appellant is entitled to the electricity supply charges from the date of

restoration of electricity i.e. from 12th October, 2017 and the Resolution

Professional is required to pay the amount on behalf of the Corporate Debtor

on month-to-month basis.

4. In these circumstances, we direct the respondent - M/s. ANG

Industries Ltd. / Insolvency Resolution Professional to pay the current

electricity charges to the appellant for the period from 12th October, 2017

onwards. The appellant will raise the electricity bill for the period from 12th

October, 2017 to 31st October, 2017; November, 2017 and December, 2017.

The respondent - Corporate Applicant through Resolution Professional will

pay the outstanding dues in instalments - first instalment for the month of

October, 2017 to be paid by 15th February, 2018, and the dues for the month

Company Appeal (AT) (Insolvency) No. 298 of 2017 3

of November be paid by 28th February, 2018; dues for the month of December,

2017 be paid by 15th March, 2018 and the dues for January, 2018 and

February, 2018 be paid by 31st March, 2018. If the respondent fails to pay

the amount within the stipulated period or in two consecutive months, it will

be open to the appellant to give notice and disconnect the electricity supply

of the Corporate Debtor.

5. The appeal stands disposed of with the aforesaid observations. No cost.

(Justice S.J. Mukhopadhaya) Chairperson

(Justice Bansi Lal Bhat) Member(Judicial) ns/uk

Company Appeal (AT) (Insolvency) No. 298 of 2017