Tribunal approves change from High to Low Transmission power supply for Iron & Steel manufacturer in liquidation The Tribunal granted the interlocutory application, directing the Liquidator to request changing the power supply category from High Transmission to Low ...
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Tribunal approves change from High to Low Transmission power supply for Iron & Steel manufacturer in liquidation
The Tribunal granted the interlocutory application, directing the Liquidator to request changing the power supply category from High Transmission to Low Transmission for the Corporate Debtor, an Iron and Steel manufacturer under liquidation. Acknowledging the ceased operations, the Tribunal found the HT power line unnecessary and instructed the Liquidator to initiate the process with the power distribution company. The decision aimed at cost-effectiveness by aligning power supply with the current operational status, ensuring efficient asset management during liquidation.
Issues Involved: Interlocutory Application seeking direction to change power supply category from High Transmission to Low Transmission for lighting purpose to safeguard assets of the Company under liquidation.
Analysis: The judgment pertains to an interlocutory application filed by the Applicant/Liquidator regarding changing the power supply category from High Transmission to Low Transmission for lighting purposes to protect the assets of the Corporate Debtor, M/s Sree Ramakrishna Alloys Limited, under liquidation. The application was filed under Section 60(5) read with Rule 11 of the NCLT, 2016. The Tribunal considered the circumstances where the Corporate Debtor's factory operations had ceased, rendering the high transmission power line unnecessary. The Applicant highlighted that the Corporate Debtor was receiving substantial electricity bills despite not utilizing the HT connection. The Liquidator sought direction to change the power supply category to LT, emphasizing the cost-effectiveness of LT tariff rates compared to HT rates.
The Tribunal acknowledged the situation of the Corporate Debtor being in the Iron and Steel manufacturing business, previously requiring HT power service for operations now ceased. Considering the closure of operations, the Tribunal agreed with the Liquidator's contention that the high transmission power line was no longer essential. The Liquidator was instructed to initiate the process by submitting a request to the Eastern Power Distribution Company of Andhra Pradesh Limited (APEPDCL) for the change of power supply category from HT to LT for M/s Sree Ramakrishna Alloys Limited. The Tribunal directed the APEPDCL to respond to the Liquidator's application and to effect the change if the request complied with the prescribed procedures and rules.
In conclusion, the Tribunal allowed the application, instructing the Liquidator to formally request the change of power supply category to LT for the Corporate Debtor. If the application met the regulatory requirements, the APEPDCL was mandated to facilitate the change. Additionally, the Liquidator was advised to seek further directions from the Tribunal if needed during the process. This judgment ensures the efficient management of assets during the liquidation process by optimizing operational costs through appropriate power supply adjustments.
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