Tribunal asserts jurisdiction over Resolution Plan, directs refund & protects interests

The Tribunal confirmed its jurisdiction to hear the application based on the approved Resolution Plan, emphasizing its authority to adjudicate related matters. The Resolution Plan was deemed binding on all stakeholders, including Respondent No. 1, with the Tribunal directing the refund of the amount paid under protest and issuance of necessary certificates. Undisclosed arrears claims post-Resolution Plan approval were rejected, highlighting the protection of the Resolution Applicant's interests.

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Issues Involved
1. Jurisdiction of the Tribunal to hear the application.
2. Applicability of the approved Resolution Plan to the Respondent.
3. Legitimacy of the electricity arrears claimed by Respondent No. 1.
4. Refund of the amount paid under protest by the Applicant.
5. Issuance of "No Objection Certificate" and "No Dues Certificate" by Respondent No. 1.

Detailed Analysis

Jurisdiction of the Tribunal
The Tribunal confirmed its jurisdiction to hear and decide the present application based on its previous order dated October 14, 2019, which approved the Resolution Plan of the Applicant. The Tribunal emphasized that it has the authority to adjudicate matters related to the implementation of the Resolution Plan.

Applicability of the Approved Resolution Plan to the Respondent
The Tribunal highlighted that the Resolution Plan, once approved, is binding on all stakeholders, including creditors like Respondent No. 1 (MSEDCL). The Tribunal cited the Supreme Court's ruling in the case of Committee of Creditors of Essar Steel India Limited vs. Satish Kumar Gupta, which stated that "a successful resolution applicant cannot suddenly be faced with undecided claims after the resolution plan being submitted by him." This principle was reinforced by the Bombay High Court in GGS Infrastructure Pvt. Ltd. vs. Commissioner of CGST and Central Excise, which observed that the provisions of the Insolvency and Bankruptcy Code have an overriding effect, making the Resolution Plan binding on all creditors, including government authorities.

Legitimacy of the Electricity Arrears Claimed by Respondent No. 1
Respondent No. 1 claimed arrears amounting to Rs. 2,16,847 for Additional Energy Charges (AEC) applicable from August 2013 to January 2014. The Tribunal noted that these charges were not raised during the Corporate Insolvency Resolution Process (CIRP) and were not included in the Resolution Plan. The Tribunal emphasized that any claims not lodged during the CIRP cannot be added post-approval of the Resolution Plan. The Tribunal also noted that Respondent No. 1 had issued a "No Dues Certificate" on March 11, 2015, which further invalidated the claim for arrears.

Refund of the Amount Paid Under Protest by the Applicant
The Tribunal directed Respondent No. 1 to refund the amount of Rs. 2,17,000 paid under protest by the Applicant. The Tribunal ruled that this amount should be credited to the bank account of Bhadrashree Steel & Power Ltd. or alternatively adjusted against future bills. This decision was based on the principle that the Applicant should not be liable for dues arising from the actions or inactions of the erstwhile management of the Corporate Debtor.

Issuance of "No Objection Certificate" and "No Dues Certificate" by Respondent No. 1
The Tribunal directed Respondent No. 1 to issue a fresh "No Objection Certificate" and "No Dues Certificate" in favor of Ambey Iron Pvt. Ltd. This direction was given to ensure that the Applicant could operate the unit without any hindrance, thus facilitating the revival of the Corporate Debtor as envisaged in the Resolution Plan.

Conclusion
The Tribunal allowed the application filed by the Applicant, directing Respondent No. 1 to credit the amount paid under protest and issue the necessary certificates. The Tribunal's decision reinforced the binding nature of the Resolution Plan on all stakeholders and protected the interests of the Resolution Applicant from undisclosed claims arising post-approval of the Resolution Plan.

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