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of <h1>Court Orders Restoration of Electricity Connection for Corporate Debtor Post-Liquidation</h1> <h3>STATE BANK OF INDIA Versus IMPEX METAL & FERRO ALLOYS LIMITED</h3> STATE BANK OF INDIA Versus IMPEX METAL & FERRO ALLOYS LIMITED - TMI Issues:1. Restoration of electricity connection for Corporate Debtor.2. Maintaining uninterrupted supply of electricity for Corporate Debtor.3. Legal entitlement to electricity connection post liquidation.4. Payment of past electricity dues by the Corporate Debtor.5. Interpretation of regulations regarding sale of Corporate Debtor as a going concern.6. Obligations of the successful auction purchaser regarding electricity connection.7. Application of Insolvency and Bankruptcy Code on electricity regulations.8. Refund of excess security deposit by the electricity supplier.Issue 1: Restoration of electricity connection for Corporate DebtorThe Applicant sought a direction to restore the electricity connection of the Corporate Debtor to facilitate necessary repair work and maintain it as a going concern. The Respondent No. 1 initially refused reconnection due to outstanding dues, leading to a deposit by the Applicant for reconnection.Issue 2: Maintaining uninterrupted supply of electricity for Corporate DebtorThe Applicant also requested uninterrupted electricity supply post-restoration to ensure the Corporate Debtor's continuity as a going concern. Despite a substantial deposit made by the Applicant, the connection was not energized, leading to further discussions and legal actions.Issue 3: Legal entitlement to electricity connection post liquidationThe debate centered on the Applicant's entitlement to a new electricity connection for the Corporate Debtor post liquidation sale. The Respondent No. 1 argued that a new connection could only be established after payment of accrued dues and signing of a new agreement with the successful bidder.Issue 4: Payment of past electricity dues by the Corporate DebtorThe Respondent No. 1 insisted on clearing past electricity dues before establishing a new connection, citing regulatory requirements and contractual obligations. The Applicant contended that as a going concern sale, the Corporate Debtor should receive the connection in its name without liability for previous dues.Issue 5: Interpretation of regulations regarding sale of Corporate Debtor as a going concernThe legal arguments delved into the interpretation of IBBI regulations regarding the sale of a corporate debtor as a going concern. The Applicant emphasized the survival of the Corporate Debtor post-sale and the transfer of ownership to the successful bidder, entitling the Corporate Debtor to receive the connection in its name.Issue 6: Obligations of the successful auction purchaser regarding electricity connectionThe Applicant, as the successful auction purchaser, fulfilled financial obligations and deposited security amounts for the electricity connection. The legal discourse revolved around the responsibilities of the successful bidder in ensuring the reconnection and maintenance of the Corporate Debtor's electricity supply.Issue 7: Application of Insolvency and Bankruptcy Code on electricity regulationsThe legal arguments extended to the application of the Insolvency and Bankruptcy Code on electricity regulations, emphasizing the overriding effect of the I&B Code on existing laws, including the Electricity Act, 2003. The Applicant's non-liability for dues pre-sale certificate issuance was highlighted.Issue 8: Refund of excess security deposit by the electricity supplierThe final directives included the refund of any excess security deposit by the electricity supplier to the Applicant, along with specific instructions for documentation, energizing the connection, payment of statutory charges, and consideration of dues by the liquidator.This comprehensive analysis reflects the intricate legal considerations and regulatory interpretations involved in the judgment, addressing each issue with detailed insights into the parties' arguments and the tribunal's final directives.
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