TaxTMI 
TaxTMI 
2020 (12) TMI 247
X X X X Extracts X X X X
X X X X Extracts X X X X
....ee (applicant) to issue directions to M/s. Southern Power Distribution Company of A.P Ltd. (SPDCL) through its Chairperson and Managing Director to immediately restore both the electricity connections (i) HT Service No. 328 and (ii) HT Service No. 375 issued to M/s. Kalpatru Steel Rolling Mills Ltd. without insisting upon for payment of any past dues and without insisting for any fresh security deposit from the Resolution Applicant as the supply of electricity is an essential and integral part of the resolution of the corporate debtor (the company) and pass orders deem fit in this case. 2. On perusal of this application, it appears that power supply connection was issued to the company on 09.05.2008, as the company over a period of time ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....revails over all other enactments; power supply dues are statutory in character and they cannot partake the character of dues of purely contractual in nature. For which the Counsel of SPDCL relied upon a case in between Telangana State Southern Power Distribution Company Limited and Another vs. Srigdaa Beverages, wherein the Hon'ble Supreme Court held that auction held under 35 of the SARFAESI will not have overriding effect on Section 56 of Electricity Act, 2003, therefore the auction purchaser shall first pay the dues payable to Electricity Department out of sale proceeds of the corporate debtor asset. Another reason given in the case supra is, that electricity dues, where they are statutory in character under the Electricity Act and ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....w. 238: Provisions of this Code to override other laws:- The provisions of this Code shall have effect, notwithstanding anything inconsistent therewith contained in any other law for the time being in force or any instrument having effect by virtue of any such law. 7. It is true that both sections are photo image to each other, except to the extent of saying "ACT" in SARFAESI, "CODE" in IBC, now the moot point is as to whether by seeing this resemblance, can we apply the principle applied in the case supra to this case as well to say that power dues arose before CIRP period shall be paid by the Corporate Debtor/Resolution Applicant to SPDCL? 8. As to these dues, it is clear that the applicant has sought two reliefs, one - SPDCL sha....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ther giving new life or winding up of a company - either way liabilities of a Company once for all will be determined. So to give such kind of determination, a company cannot be left over with past liabilities, therefore after approval of the Resolution to the company u/s 31 of the Code, the Resolution in respect to the past dues will remain binding over all the stakeholders falling u/s 31 of the Code. So, once plan is approved, the parties upon which the plan is binding, cannot rake up past liabilities by invoking law that is inconsistent with the provisions of the Code, therefore the ratio decided in the case supra is not applicable to the facts of this case. Accordingly, we hold that SPDCL cannot make its claim after plan has been approv....
X X X X Extracts X X X X
X X X X Extracts X X X X
....law for the time being in force, as to Section 30(2), Section 238 notwithstanding clause is not applicable. Therefore, if the Resolution Applicant/corporate debtor wants to have electricity connection to the company, it has to apply for connection as provided under law but not by showing this resolution plan as a ground for getting HT power supply connections without making fresh security deposit. Therefore Section 31(4) of the Code cannot equate the concept of one year time allowed to obtain approvals required under any law for time being in force with the precondition of deposit of security to provide power connection under Electricity Act 2003. By looking at the name of the corporate debtor, it is patently apparent that it is a heavy ind....