9911796707
TMI Blog2022 (11) TMI 1502X X X X Extracts X X X X X X X X Extracts X X X X ..... ping hand extended by the resolution process under Insolvency and Bankruptcy Code, 2016, it got up. Petition was filed against the petitioner company under Section 7 of the Code in November 2018. On 22.07.2019, SNJ Distilleries Private Limited came out as the successful bidder and its resolution plan was approved by NCLT, Chennai on 20.01.2020. It took over the management of the company as a going concern. The petitioner received the impugned communications issued by the Superintending Engineer, Pudukkottai Electricity Distribution Circle, Pudukkottai, TANGEDCO demanding payment of a sum of Rs.1,23,69,195/-. Contending that the demand is without jurisdiction, this writ petition has been filed. 2.The sheet anchor of the submission of the le ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on this Court to dismiss this writ petition. 4.Since certain complicated questions of law had arisen for consideration, I appointed Shri.Sricharan Rangarajan, learned counsel as amicus curiae to assist the court. He also filed written submissions. The learned amicus curiae submitted that the subject claim had not crystallized when the resolution plan was approved and therefore the case-laws relied on by the petitioner's counsel are distinguishable. He would submit that the petitioner company is having its place of business and operations at Aranthangi and therefore, paper publication must have been made in a newspaper having wide circulation in Pudukkottai District. Since publication made in this case was not in accordance with Section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the amount to be paid to such creditors, in the event of liquidation of the Corporate Debtor under Section 53, or the amount that would have been paid to such operational creditors, if the amount to be distributed under the resolution plan had been distributed in accordance with the order of priority in Sub-section 2 of Section 53, whichever was higher, and provided for the payment of debts of financial creditors, who did not vote in favour of the resolution plan, in such manner as might be specified by the Board. 46.Under Section 31 of the IBC, a resolution plan as approved by the Committee of Creditors under Sub-Section (4) of Section 30 might be approved by the Adjudicating Authority only if the Adjudicating Authority is satisfied th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ments of Sub-Section (2) of Section 30 of the IBC, would be invalid and not binding on the Central Government, any State Government, any statutory or other authority, any financial creditor, or other creditor to whom a debt in respect of dues arising under any law for the time being in force is owed. Such a resolution plan would not bind the State when there are outstanding statutory dues of a Corporate Debtor. 49. Section 31(1) of the IBC which empowers the Adjudicating Authority to approve a Resolution Plan uses the expression "it shall by order approve the resolution plan which shall be binding..." subject to the condition that the Resolution Plan meets the requirements of subsection (2) of Section 30. If a Resolution Plan meets the r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dicating Authority is bound to reject the Resolution Plan." I am conscious that in the aforesaid decision, the State had challenged the order of the adjudicating authority rejecting the claim of first charge. The Hon'ble Supreme Court set aside the resolution plan approved by the Committee of Creditors. In the case on hand, there is no challenge to the order passed by NCLT approving the resolution plan. Be that as it may, applying the test of invalidity laid down in Rainbow Papers Limited, it is beyond dispute that the resolution plan ignores the electricity dues payable to TANGEDCO, a statutory corporation, owned by the Government of Tamil Nadu. 6.The learned counsel for the petitioner would vehemently contend that in Ghanashyam Mis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er or lease basis, the Distribution Licensee shall reconnect such service connections or effect new service connections, as the case may be, in such premises only after payment of dues attributed to such premises by the applicant: Provided that in case such premises have legally been sub-divided, the outstanding dues attributed to such premises shall be divided in proportion to the area covered by that sub-division. A new service connection to any of such sub-divided premises shall be given only after the share of outstanding dues attributed to such sub-divided premises, is duly paid by the applicant. The Distribution Licensee shall not refuse connection to an applicant of such sub-divided premises only on the ground that, dues attribute ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
