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TMI Blog2022 (11) TMI 1502X X X X Extracts X X X X X X X X Extracts X X X X ..... f the IBC, claim means right to payment or right to remedy for breach of contract. Even if the submissions of the learned counsel appearing for the petitioner anchored on Ghanashyam Mishra [ 2021 (4) TMI 613 - SUPREME COURT] and Ruchi Soya [ 2021 (5) TMI 45 - MADRAS HIGH COURT] are accepted, the result can only be that TANGEDCO cannot go after the petitioner to enforce its claim. But when the petitioner comes to TANGEDCO and seeks grant of fresh connection or restoration of supply, TANGEDCO can say sorry. This will not amount to enforcing its claim. It is also not a remedy for breach of contract. TANGEDCO would merely be acting in consonance with the statutory provisions governing it. Such a reading of the statutory scheme of the Electricity Act and the regulations framed thereunder in no way devalues the overriding effect of the Code. Once bitten, twice shy. Court cannot compel a creditor who has already had a massive hair-cut to continue to show his head to the defaulter. The writ petition is dismissed. - THE HON'BLE MR.JUSTICE G.R.SWAMINATHAN For the Petitioner : Mr.AR.Karthik Lakshmanan for Mrs.A.L.Gandhimathi For the Respondents : Mr.S.Dheenadhayalan, standing counsel as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a defaulter. He called upon 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 13 of the Code, the resolution plan may not be binding on TANGEDCO. Relying on a few decisions of the Madras High Court, he submitted that the statutory dues cannot be ignored totally while formulating the resolution plan. 5.I carefully considered the rival contentions and went through the materials on record. Order was reserved on 27.07.2022 and it is being pronounced only today. In the intervening period, the Hon'b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it the resolution plan approved by the CoC before the adjudicating authority for its approval under Section 31 IBC, at least fifteen days before the maximum period for completion of CIRP. Section 31(1) provides that the adjudicating authority shall approve the resolution plan if it is satisfied that it complies with the requirements set out under Section 30(2) IBC. Essentially, the adjudicating authority functions as a check on the role of the RP to ensure compliance with Section 30(2) IBC and satisfies itself that the plan approved by the CoC can be effectively implemented as provided under the proviso to Section 31(1) IBC. Once the resolution plan is approved by the adjudicating authority, it becomes binding on the corporate debtor and its employees, members, creditors, guarantors and other stakeholders involved in the resolution plan . 48. A resolution plan which does not meet the requirements 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 Mishra it had been categorically laid down that the claims which do not form part of the resolution plan stand extinguished. Since TANGEDCO failed to lodge its claim, it cannot now make the impugned demand in view of the extinguishment of the dues in question. Rainbow Papers is a subsequent decision and refers to Ghanashyam Mishra. The resolution plan as approved by NCLT may not be binding on TANGEDCO in view of its apparent invalidity. But TANGEDCO may not be able to initiate proceedings for enforcing its claims so long as the order of the NCLT has not been formally set aside. It is in this view of the matter, I decline to issue a Writ of Certiorari as sought for by the petitioner. 7.But that is not the end of the matter. While TANGEDCO may not be able to enforce its claims, it can still decline to grant fresh electricity service connection for the premises in question or restore the earlier connection. It is tru ..... X X X X Extracts X X X X X X X X Extracts X X X X
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