2017 (9) TMI 1873

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....Ltd.,Baddi., 3. Mr.D.K.Gupta, Advocate, for PNB, 4. Mr.B.B.Kharduja, Chief Manager, PNB, ORDER (Oral) Two prayers have been made in the application CA No.72/2017 filed by the Applicant in CP (IB) No.8/Chd/CHD/2017 under Section 10 of Insolvency and Bankruptcy Code, 2016 (for brevity, the 'Code') which was admitted by this Tribunal on 07.04.2017 declaring moratorium in terms of Section 14(1) of the Code and appointing Mr.Prakash Dev Sharma, Applicant as the Interim Resolution Professional who has since been appointed as the Resolution Professional by the Committee of Creditors. 2. One issue raised is with regard to the payment of electricity bills. The petitioner company has been taken over as a going concern and it is still having ....

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....2) of the Code, is electricity to the extent, this is not a direct input to the output produced or supplied by the Corporate Debtor. It is submitted by the learned counsel for the Electricity Department that there is single meter installed for office premises and the outside area as well as to the premises of the production unit. The Corporate Debtor is admittedly being run as a going concern and is producing finished goods by use of electricity for the said unit. The process of production cannot be said to be not the direct input to the output produced or supplied by the Corporate Debtor for granting exemption from payment of electricity bills. 6. However, the Resolution Professional should have immediately on his appointment applied fo....

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....8. On the other prayer made by the Applicant, learned counsel for PNB referred to the letter (Annexure R-1) dated 20.06.2016 wherein the Corporate Debtor had made a request to the Bank for operation through TRA account (Transaction Recovery Account) with 5% tagging till some permanent solution of the problem is worked out. This arrangement was made in the account of the Corporate Debtor having been declared as NPA but the same cannot be enforced after the declaration of moratorium. For this it would be relevant to refer Section 14(1) (a) and (c) of the Code which read as under; - "14. (1) Subject to provisions of sub-sections (2) and (3), on the insolvency commencement date, the Adjudicating Authority shall by order declare morator....