Supreme Court affirms lower court, dismisses appeals on electricity arrears & tribunal jurisdiction. The Supreme Court upheld the lower court's decision, dismissing the appeals regarding the payment of arrears for an electricity connection and the ...
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The Supreme Court upheld the lower court's decision, dismissing the appeals regarding the payment of arrears for an electricity connection and the jurisdiction of the tribunal in corporate debtor's dues. The appellant was not allowed to demand arrears for the electricity connection, and the tribunal's jurisdiction extended to cases involving dues payable to creditors, including the government. The resolution plan approved by the adjudicating authority must be followed in paying the corporate debtor's dues. Any pending applications were considered disposed of following the dismissal of the appeals.
Issues involved: The legal issue regarding payment of arrears for grant of electricity connection, jurisdiction of tribunal in relation to corporate debtor's dues.
Payment of Arrears for Electricity Connection: The appellant, Tata Power Western Odisha Distribution Limited, cannot demand payment of arrears to grant an electricity connection, as per the precedent set in previous judgments. The successful resolution applicant must comply with other requirements for the connection, but insisting on arrears payment would negate the clean slate principle.
Jurisdiction of Tribunal in Corporate Debtor's Dues: Referring to the case of Embassy Property Developments Private Limited vs. State of Karnataka, the tribunal under the Code has jurisdiction when the issue relates to dues payable to an operational or financial creditor. The tribunal's authority extends to cases where the government is an operational creditor, and the dues of the corporate debtor must be paid as per the resolution plan approved by the adjudicating authority. The tribunal's jurisdiction covers matters arising in relation to insolvency resolution under section 60(5)(c) of the Code.
Judgment: The Supreme Court found no valid reason to interfere with the impugned judgment and orders, leading to the dismissal of the present appeals. Any pending applications are deemed disposed of as a result.
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