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TMI Blog2024 (7) TMI 385X X X X Extracts X X X X X X X X Extracts X X X X ..... re is, as is what is, whatever there is and without recourse basis and framed the question that electricity dues of the CD who underwent insolvency resolution process/liquidation process can still be insisted against the Successful Resolution Applicant/Successful Auction Purchaser is not res integra? . The decision in the case of Telangana State Southern Power Distribution Company Ltd. Anr. Vs. Srigdhaa Beverages [ 2020 (6) TMI 37 - SUPREME COURT ], has also been distinguished in this case and also observed that ' This Tribunal took view that when the Corporate Debtor is sold in the liquidation proceeding, Corporate Debtor cannot be burdened by any past or remaining unpaid outstanding liabilities.' There is a patent error in the approach of the Adjudicating Authority in dismissing the application of the Appellant, therefore, the present appeal succeeds and the impugned order is hereby set aside though without any order as to costs - Petition allowed. - [ Justice Rakesh Kumar Jain ] Member ( Judicial ) And [ Mr. Indevar Pandey ] Member ( Technical ) For the Appellants : Ms. Prachi Johri , Adv For the Respondent : Mr. Naveen S. Bhardwaj , Mr. Prashant Kapila , Adv. for R1 M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Appellant filed I.A. No. 962 of 2022 before the Adjudicating Authority for the issuance of necessary direction for the release of new electricity connection in its name and setting aside the outstanding raised by Respondent No. 1 through letter dated 22.05.2022, pending towards Corporate Debtor against its electricity connection at the premises situated on Khata No. 210/215, bearing Khasra No. 51/11/2-12-13 in Hadbast No. 76 situated in village Bazra Tehsil East Ludhiana, Punjab. 7. In this application, Respondent No. 1 filed reply dated 01.02.2023 in which it was stated that the sale conducted by Respondent No. 2 was a simple stand alone asset sale and not a sale of the CD as a going concern. It was also stated that as per the sale certificate, the liquidator is not responsible for any shortfall or defect or shortcoming in the said land or title of the said land and that all past, present and future statutory and other liabilities whether due or overdue by whatever name being called including electricity dues are to borne by the successful bidder. It was also stated that the sale of the land was on as is where is basis, as is what is basis, whatever there is basis, no recourse b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s submitted that once a claim is dealt with under liquidation process, such claim gets extinguished and the creditor cannot be allowed to renew the claim and insist for payment of entire dues. It is submitted that in the case of Chinar Steel Segments Centre Pvt. Ltd. (Supra) it has been held that the arrears of the electricity dues cannot be insisted upon for issuing a new connection. She has further submitted that even if the e-auction notice/sale certificate provides that dues are to be paid by the auction purchaser, the same cannot override the applicable law. In this regard, she has relied upon a decision of this Court rendered in the case of Paschimanchal Vidyut Vitran Nigam Ltd. Vs. HSA Traders through Sole Proprietor Ors., CA (AT) (Ins) No. 527 of 2023. She has further submitted that in the case of Paschimanchal (Supra) it has been held that Section 238 of the Code overrides the provisions of the Electricity Act, 2003 despite the latter containing two specific provisions which open with nonobstante clauses (Section 173 and 174). 12. On the other hand, Counsel for Respondent No. 1 has submitted that the distribution licensee has a right to recover electricity dues from the au ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al Vidyut Vitran Nigam Ltd. vs. Raman Ispat Private Limited Ors.- 2023 SCC Online SC 842 and has also noted the judgment of the Hon ble Supreme Court in Embassy Property Developments Pvt. Ltd. and distinguished the same. It is useful to extract the entire judgment of the Hon ble Supreme Court dated 11.09.2023, which is to the following effect:- In our opinion, the legal issue is covered by the judgment of this Court in Paschimanchal Vidyut Vitran Nigam Ltd. vs. Raman Ispat Private Limited and Others 1 and the order of this Court in Southern Power Distribution Company of Andhra Pradesh Limited vs. Gavi Siddeswara Steels (India) Pvt. Ltd. and Another. 2 The appellant Tata Power Western Odisha Distribution Limited cannot insist on payment of arrears, which have to be paid in terms of the waterfall mechanism, for grant of an electricity connection. However, the successful resolution applicant will have to comply with the other requirements for grant of electricity connection. The clean slate principle would stand negated if the successful resolution applicant is asked to pay the arrears payable by the corporate debtor for the grant of an electricity connection in her/his name. In Embas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the law laid down by this Tribunal as well as the Hon ble Supreme Court as noted above. 39. In view of the foregoing discussions, we are satisfied that the Adjudicating Authority committed error in rejecting IA No. 984 of 2021 as not maintainable. We hold that the application is fully maintainable under Section 60(5) for the reasons as indicated above. The Appellant has made out a case for grant of reliefs as claimed in the application. In result, we allow the Appeal in following manner:- The impugned order dated 01.09.2022 is set aside. IA No.984 of 2021 is allowed. Respondent No.1 to grant fresh connection of electricity after taking all necessary charges for fresh connection except outstanding dues of the Corporate Debtor which stood satisfied and extinguished as per the liquidation proceedings against the Corporate Debtor 17. Similarly, in the case of Paschimanchal Vidyut Vitram Nigam Ltd. (Supra), this Court has reiterated its view that the past dues cannot be claimed for the purpose of grant of new electricity connection. In this regard, the following observations have been made which read as under:- 17. The Hon ble Supreme Court in Tata Power (Supra) clearly held that Tata P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... chaser is not res integra? . The decision in the case of Telangana State Southern Power Distribution Company Ltd. Anr. Vs. Srigdhaa Beverages, (2020) 6 SCC 404, has also been distinguished in this case and also observed that:- 15. In the case of Chinar Steel Segments Centre Pvt. Ltd. vs. Samir Kumar Agarwal (Supra), this Tribunal has noticed the judgment of Hon ble Supreme Court in Telangana State Southern Power Distribution Company Ltd. Anr. vs. Srigdhaa Beverages as well as Eastern Power Distribution Company of Andhra Pradesh Limited vs. Maithan Alloys Limited Ors.- Company Appeal (AT) (Ins.) No.961 of 2021 of this Tribunal which judgment has also been relied by the Adjudicating Authority in the impugned order. The Judgment of this Tribunal in Shiv Shakti Inter Globe Exports Pvt. Ltd. vs. KTC Foods Pvt. Ltd. Anr., Company Appeal (AT) (Ins.) No. 650 of 2020 decided on 25.02.2022 also support the submission made by learned counsel for the Respondent. This Tribunal took view that when the Corporate Debtor is sold in the liquidation proceeding, Corporate Debtor cannot be burdened by any past or remaining unpaid outstanding liabilities. 19. The Judgment relied upon by Respondent in th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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