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TMI Blog2019 (11) TMI 400X X X X Extracts X X X X X X X X Extracts X X X X ..... sses' were initiated one against 'M/s. Paragon Steels (P) Ltd.' and another against 'M/s. SMM Steel Re-rolling Mills Private Limited', for which Common 'Resolution Professional' was appointed and matters were heard together. 3. 'M/s. Paragon Steels (P) Ltd.' has two units namely- (i) LCN 19/3051 (Unit-1); (ii) LCN 19/4028 (Unit-2). On the other hand, 'M/s. SMM Steel Re-Rolling Mills Private Limited' has one unit namely- LCN 18/3255. 'M/s. Kerala State Electricity Board' was supplying electricity to all the aforesaid three units, which were disconnected owing to non-payment of dues during the 'Corporate Insolvency Resolution Process'. 4. In the said common proceeding(s), on 26th October, 2018, the Adjudicating Authority after hearing the parties and on the concessions given by both the parties, directed the 'Resolution Professional' to deposit an amount of Rs. 3.25 Crores, which is equivalent to the dues payable to 'M/s. Kerala State Electricity Board' for the months falling within 'Corporate Insolvency Resolution Process' period in Escrow Account without prejudice to the rights and contentions of either side, likewise directed 'M/s. Kerala State Electricity Board' to forthwith ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The Appellants- 'Asset Reconstruction Company (India) Limited' and Mr. R. Venkatakrishnan- ('Resolution Professional') preferred the appeals against the said order. 10. Learned counsel appearing on behalf of the Appellant- Asset Reconstruction Company (India) Limited' submits that the 'Corporate Debtor' 'M/s Paragon Steels' as on 15th September, 2017 had an outstanding payment of Rs. 2,60,47,669 (Rupees Two Crores Sixty Lakhs Forty-Seven Thousand Six Hundred and Sixty-Nine only) owed to 'Kerala State Electricity Board'. As on 15th September, 2017, it had also outstanding payment of Rs. 64,78,610 (Rupees Sixty-Four Lakhs Seventy-Eight Thousand Six Hundred and Ten) to 'Kerala State Electricity Board'. The 'Corporate Debtor' was constrained to make payment to 'Kerala State Electricity Board' towards electricity supply for the period prior to 'Corporate Insolvency Resolution Process' of Rs. 2,60,47,669 (Rupees Two Crores Sixty Lakhs Forty-Seven Thousand Six Hundred and Sixty-Nine only) and Rs. 64,78,610 (Rupees Sixty-Four Lakhs Seventy-Eight Thousand Six Hundred and Ten) to keep the 'Corporate Debtors' as going concern and to avoid the electricity disconnection. 11. It was submitte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y Resolution Process' period dues. Similarly, in terms of the approved 'Resolution Plan', the amount which was due to the 'Kerala State Electricity Board' from 'M/s. SMM Steel Re-Rolling Mills Private Limited', a sum of Rs. 16,87,883/- was paid on 15th September, 2019 after adjusting a sum of Rs. 64,78,610/- which was earlier paid on 6th October, 2018 towards pre 'Corporate Insolvency Resolution Process' period. 15. Thereafter, despite due payment of the outstanding electricity dues and its due intimation to the 'Resolution Professional' on 8th October, 2018, the Electricity Board failed to restore electric supply which had been disconnected since July, 2018, which was restored pursuant to interim order passed by the Adjudicating Authority on 26th October, 2018 subject to deposit of Rs. 3.25 Crores in an Escrow Account. 16. It was submitted that the Electricity Board being a provider of electricity services to the 'Corporate Debtor', squarely falls under the definition of 'Operational Debt' as per section 5(2 ) of the 'I&B Code'. Thus, by virtue of the above definition the 'Resolution Professional' ought to have submitted its claims in accordance with the provisions of the 'I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llows: "32. Essential supplies.─ The essential goods and services referred to in section 14(2) shall mean- (1) Electricity; (2) Water; (3) Telecommunication services; and (4) Information technology services, to the extent there are not a direct input to the output produced or supplied by the corporate debtor." 23. In that view of the matter, it was not open to the Electricity Board to disconnect the electricity which is in violation of Section 14(2) of the 'I&B Code'. 24. If any amount due for the period of the 'Corporate Insolvency Resolution Process' was not paid, in such case, Electricity Board should have moved before the Adjudicating Authority for payment of current dues of 'Corporate Insolvency Resolution Process', but it had no jurisdiction to disconnect the electricity in violation of Section 14(2) of the 'I&B Code'. 25. The Electricity Board provides services by supplying electricity and thereby comes within the meaning of 'Operational Creditor' as defined under Section 5(20) read with Section 5(21) of the 'I&B Code'. 26. Similar matter fell for consideration before this Appellant Tribunal in "Uttrakhand Power Corporation Ltd. v. M/s. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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