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TMI Blog2023 (1) TMI 348X X X X Extracts X X X X X X X X Extracts X X X X ..... f. - Company Appeal (AT)(CH)(Ins) No.258/2021 & IA No.550/2021 - - - Dated:- 5-1-2023 - [ Justice M. Venugopal ] Member ( Judicial ) And [ Shreesha Merla ] Member ( Technical ) For the Appellant : Mr. Nishant Sharma , Advocate For the Respondent No.1 : A. K. Mylsamy Associates ORDER ( Virtual Mode ) Heard Mr. Nishant Sharma, the Learned Counsel appearing for the Appellant and the Learned Counsel for the Respondent No.1 appearing on behalf of M/s. A.K. Mylsamy Associates in the instant Comp. Appl. (AT)(CH)(Ins) No.258/221. 2. Earlier, the Adjudicating Authority , (National Company Law Tribunal, Hyderabad Bench-I) while passing the impugned order in IA No.1079 of 2019 in CP (IB) No.673/07/HDB/2018 dated 13.12.2019 at Paragraph Nos.20 to 24 had observed the following:- 20. It is further stated by the Applicant that the Resolution Plan takes care of the interest of Financial Creditors and a provision is made for payment of CIRP costs which shall be paid as first priority. It is stated that no payment is made to Operational Creditor, as operational creditor would not get any amount in the event of liquidation as per provision of 30 (2) (b) of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er words I am satisfied with the Resolution Plan as approved by Committee of Creditors under Section 30 (4) of the Code and it meets the requirement as referred to in Seetion 30 (2) of IBC, 2016. Accordingly, the Resolution Plan stands approved with above condition and the same is binding on Corporate Debtor, its employees, Members, Creditors including the Central Government, any State Government or any Local Authority to whom a debt in respect of the payment of dues arising under any law for the time being in force, such as authorities to whom statutory dues are owed, Guarantors and stakeholders involved in the Resolution Plan in terms of Section 31 (1) Of the Code. 2. The moratorium order passed under Section 14 shall cease to have effect from today. 3. The Resolution Professional shall forward all records relating to the conduct of the Corporate Insolvency Resolution Process and the Resolution Plan to the Board to be recorded on its database. 4. The Resolution Applicant shall obtain necessary approval required under any law for the time being in force within a period of one year from the date of approval of the Resolution Plan or within such period as provided for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Pradesh Electricity Regulatory Commission. The Adjudicating Authority has no jurisdiction to waive the electricity dues recoverable from the premises. It is submitted that the electricity dues cannot be waived in the Resolution Plan. In the Appeal reliance has been placed on the judgment of Hon ble Supreme Court in Telangana State Southern Power Distribution Company Ltd. Anr. vs. M/s Srigdhaa Beverages, 2020 SCC OnLine SC 478 . It is submitted that previous dues cannot be waived and Appellant is entitled to insist for payment of previous dues before restoration of electricity supply. 3. The issues which have been raised by the Appellant in this Appeal are fully covered by the judgment of this Tribunal in Company Appeal (AT) (Ins.) No.62 of 2022, Damodar Valley Corporation vs. Dimension Steel and Alloys Ors., decided on 23.05.2022 . In the above case the approval of plan was challenged on various grounds. One of the ground raised was that Appellant was entitled to claim unpaid dues as per West Bengal Electricity Regulatory Commission (Electricity Supply Code) Regulations, 2013. In the above judgment in paragraphs 14 to 17 following has been laid down: 14. There is n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CIRP under the Code. The Code has been given overriding effect, on any other inconsistent law under Section 238. When any statutory provision including the provisions of West Bengal Electricity Regulatory Commission (Electricity Supply Code) Regulations, 2013 are overridden, the question of contravention of such provision does not arise. In event, the submission of learned Senior Counsel is accepted that all laws in force, including the Regulations in question have to be followed in the Resolution Plan and any contravention shall violate Section 30, sub-section (2) (a) (e), the provision of Section 238 shall become redundant. From the conjoint reading of the provisions of Code, it is clear that in event any provision is not overridden by Section 238, Resolution Plan cannot contravene any existing law. 4. We may also refer to another judgment of this Tribunal in Company Appeal (AT) (Ins.) No.961 of 2021, Eastern Power Distribution Company of Andhra Pradesh Limited. Vs. Maithan Alloys Limited Ors., decided on 26.05.2022 , where this Tribunal had occasion to consider the judgment of Hon ble Supreme Court in Telangana State Southern Power Distribution Company Ltd. Anr. vs ..... X X X X Extracts X X X X X X X X Extracts X X X X
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