2023 (3) TMI 1279 - AT - Insolvency and Bankruptcy

Payment of Electricity dues during CIRP period - application rejected since the electricity Department cannot use the non-payment of pre-CIRP dues for disconnecting the electricity - HELD THAT - There can t be any dispute that the Appellant/Monitoring Professional/Resolution Professional were liable to make the payment of the dues during the CIRP period, which according to Appellant stood paid. It is observed that in the event any amount is still due with regard to the electricity dues during the CIRP, it shall be open for the Department to issue bill and realise the same. It is further made clear that R-1 having not filed any claim in the CIRP regarding pre-CIRP dues, it is not entitled to recover the pre-CIRP dues and on non-payment of the said amount, to disconnect the electricity. The prayers made in the application does not require any consideration. Appeal disposed off.

Summary

Issues:
The appeal against the order dismissing the application filed by the 'Resolution Professional' (RP) regarding pending dues during the Corporate Insolvency Resolution Process (CIRP) period and post-CIRP monitoring period, along with the issue of electricity disconnection by the Respondent.

Pending Dues Issue:
The appeal was filed by the 'Successful Resolution Applicant' (SRA) seeking reconciliation and submission of pending amounts due during the CIRP period and post-CIRP monitoring period. The Appellant claimed to have paid the electricity dues during the CIRP period, but the payment was made post-approval of the Plan. The Appellant argued that the application should not be rejected based on non-payment of pre-CIRP dues, as no claim was filed by the Department during the CIRP.

Electricity Disconnection Issue:
The Respondent confirmed that bills were paid, and electricity was never disconnected. However, it was highlighted that the Promoters should have disclosed the dues in the 'Information Memorandum.' The Tribunal acknowledged the payment of dues during the CIRP period by the Appellant and stated that any remaining amount due could be billed and collected by the Department. It was clarified that the Respondent could not recover pre-CIRP dues or disconnect electricity for non-payment in the absence of a claim during the CIRP.

Conclusion:
The Tribunal disposed of the appeal, emphasizing that the Respondent could issue bills for any remaining dues during the CIRP period but was not entitled to recover pre-CIRP dues or disconnect electricity without a filed claim. The prayers in the application regarding pending dues did not require consideration in light of the above findings.