2017 (11) TMI 783 - AT - Companies Law

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 - Held that - 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. 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).

Summary

Issues:
Restoration of electrical connection for Corporate Debtor due to unpaid electricity charges during moratorium period.

Analysis:
The judgment pertains to the restoration of electrical connection for the Corporate Debtor, subject to the payment of outstanding electricity charges accrued during the moratorium period. The respondent, Maharashtra State Electricity Distribution Company Limited, is willing to restore the connection if the amount due for electricity consumption from the date of moratorium (17.01.2017) till September 2017 is paid. The Appellate Tribunal allows the Interim Resolution Professional (IRP) to make the payment towards the electricity charges owed to the respondent for the specified period. Upon receipt of the payment, the respondent is obligated to restore the electrical connection within 48 hours to ensure the continuous operation of the company. Additionally, the IRP is directed to pay the monthly electricity charges moving forward to avoid any disruption in service. Failure to make these payments may lead to appropriate action by the respondent.

Furthermore, the judgment clarifies that the Corporate Debtor or the Resolution Professional are not responsible for settling any dues predating the moratorium order. These outstanding dues can be addressed during the payment process to the creditors as part of the Resolution Plan. The appeals in question are disposed of with the aforementioned directions and observations, ensuring the timely payment of electricity charges and the uninterrupted functioning of the Corporate Debtor.