Adjudicating Authority Upholds Service Connection Decision without Past Dues

The Adjudicating Authority upheld its decision to allow service connection without payment of past electricity dues, citing the extinguishment of pre-CIRP debts. The Authority dismissed the appeal challenging the validity of outstanding electricity dues against the Corporate Debtor, as no error was found in the original decision approving the Resolution Plan and rejecting the claim for arrears.

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Issues involved:
The issues involved in the judgment are:
1. Validity of the demand for outstanding electricity dues.
2. Entitlement for service connection.

Issue 1: Validity of the demand for outstanding electricity dues:
The appeal was filed against the Order passed by the National Company Law Tribunal initiating Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor. The Resolution Plan submitted by a company was approved by the Adjudicating Authority. The Appellant was informed about the approval of the Resolution Plan. The Respondent requested electricity supply from the Appellant, who informed about outstanding arrears of electricity dues. The Adjudicating Authority declared the amount claimed by the Respondents as not valid against the Corporate Debtor. The Appellant challenged this decision in the Appeal.

Issue 2: Entitlement for service connection:
The Adjudicating Authority noted that the Resolution Plan had been approved, and the claim of the Appellant against the Successful Resolution Applicant of arrears was not valid. The Authority directed the Respondent to consider the service connection application of the Applicant without insisting on payment of arrears prior to the date of plan approval. The Appellant argued that electricity dues needed to be paid before providing the service connection, citing termination of power supply agreements and outstanding arrears. The Respondent contended that the pre-CIRP dues of the Appellant had been extinguished as it did not file any claim. The Adjudicating Authority relied on a Supreme Court judgment and upheld its decision, stating that no error was made in directing the service connection without payment of past dues.

The Adjudicating Authority found no merit in the Appeal and dismissed it, as no grounds were presented to interfere with the Impugned Order.

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