TaxTMI 
TaxTMI 
2019 (5) TMI 1936
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....e. JUDGMENT SUDHANSU JYOTI MUKHOPADHAYA, J. In the 'Corporate Insolvency Resolution Process' against 'Raman Ispat Private Limited' ('Corporate Debtor'), an application was filed by the 'Liquidator' against the Appellant- 'Paschimanchal Vidyut Vitran Nigam Limited' for direction to release the attached property of 'Raman Ispat Private Limited' ('Corporate Debtor') attached by the Appellant and for issuing direction to the Appellant for submitting their claims to the 'Liquidator' of the 'Corporate Debtor' appointed under Section 33 of the Insolvency and Bankruptcy Code, 2016 ("I&B Code" for short). 2. The Adjudicating Authority (National Company Law Tribunal), Allahabad Bench, Allahabad, by impugned order dated 21st August, 2018, allowed ....
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....e 'Corporate Debtor', which attached the properties of the 'Corporate Debtor' vide its Order No. 1048 dated 12th January 2016 and Tehsildar, Muzaffarnagar vide its order 1423F dated 23rd January, 2016 and also prohibited the transfer of property by sale, donation or any other mode and create charge due to outstanding dues for supply of electrical energy by the Appellant- 'Paschimanchal Vidyut Vitran Nigam Limited'. 5. Against the 'Corporate Debtor', liquidation order has been passed under Section 33 and the liquidator's duty is to form liquidation estate of the 'Corporate Debtor' in terms of Section 36(1) of the 'I&B Code' and to consolidate claims of creditors in accordance with Section 38 of the 'I&B Code' and then distribute the proceed....
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.... It was submitted that under the provisions of the 'Electricity Act, 2003' and the 'U.P. Supply Code, 2005, framed under the said Act, 2003 have provisions under Section 42, 45 & 56 of the 'Electricity Act, 2003' and Clauses 4.3 and 6.15 of the 'U.P. Supply Code, 2005' prescribe for recovery of electricity charges. Thus, the 'Electricity Act, 2003' being a Special Act having non-obstante clause will have an overriding effect on the 'I&B Code' which is a general Act. 12. Reliance has been placed on the decision of the Hon'ble Supreme Court in "Gujarat Urja Vikas Nigam Ltd. vs. Essar Power Ltd.─ (2008) 4 SCC 755" and the decision of the Hon'ble Supreme Court in "Employees Provident Fund Commissioner vs. Official Liquidator of Esskay Ph....
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....ision in "Board of Trustees, Port of Mumbai vs. Indian Oil Corporation & Anr.─ (1998) 4 SCC 302" wherein it has held that the provisions of 'Major Board Trust Act, 1963' will have overriding effect over the Companies Act, 1956. 16. However, the aforesaid decision is not also applicable since 'I&B Code' being a complete Code and has come into force w.e.f 1st December, 2016. 17. Section 238 of the 'I&B Code' is having overriding effect on any other law for the time being in force and reads as follows: 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 ....
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....ons as may be notified by the Central Government in consultation with any financial sector regulator, as quoted hereunder: "33. Initiation of liquidation. ─ .......(5) Subject to section 52, when a liquidation order has been passed, no suit or other legal proceeding shall be instituted by or against the corporate debtor: Provided that a suit or other legal proceeding may be instituted by the liquidator, on behalf of the corporate debtor, with the prior approval of the Adjudicating Authority. (6) The provisions of sub-section (5) shall not apply to legal proceedings in relation to such transactions as may be notified by the Central Government in consultation with any financial sector regulator." 24. Section 35(1) deals with 'pow....
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....e such measures to protect and preserve the assets and properties of the corporate debtor as he considers necessary; (e) to carry on the business of the corporate debtor for its beneficial liquidation as he considers necessary; (f) subject to section 52, to sell the immovable and movable property and actionable claims of the corporate debtor in liquidation by public auction or private contract, with power to transfer such property to any person or body corporate, or to sell the same in parcels in such manner as may be specified: [Provided that the liquidator shall not sell the immovable and movable property or actionable claims of the corporate debtor in liquidation to any person who is not eligible to be a resolution applicant;]" 25....