TaxTMI 
TaxTMI 
2025 (1) TMI 634
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....by which Order, this Appeal has been filed. 2. Brief facts of the case necessary to be noticed for deciding the Appeal are: i. On an Application filed under Section 7 by the UCO Bank against the Corporate Debtor M/s. Shree Shyam Pulp and Board Mills, Corporate Insolvency Resolution Process (CIRP) commenced by Order dated 27.03.2019. No Resolution Plan having been approved in the CIRP of the Corporate Debtor, the Adjudicating Authority directed for liquidation vide Order dated 16.12.2020. ii. Liquidator made a public announcement dated 31.01.2020 inviting the claim. The Appellant filed a claim of Electricity Dues of amounting to Rs.8,43,99,407/-. iii. The Liquidator under Order passed by the Adjudicating Authority admitted the claim. In the list of stakeholders issued by Liquidator dated 18.04.2022, the claim of the Appellant to the extent of Rs.7,66,95,203/- was reflected as admitted claim. iv. Liquidator has issued several e-Auctions Notices for sale of the Assets of the Corporate Debtor as per the provisions of the Insolvency and Bankruptcy Code, 2016, (for short 'The Code or The IBC'). v. In the seventh e-Auction held on 30.07.2021....
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....bunal on 'Eastern Power Distribution Company of Andhra Pradesh Ltd.' Vs. Maithan Alloys Limited & Ors.' Comp. App. (AT) (Ins.) No. 961 of 2021, which was the case of sale of a going concern, where the outstanding Electricity Dues were contractual and not statutory. 5. Learned Counsel for the Respondent No. 1 refuting the submissions of the Counsel for the Appellant submits that the Appellant had filed claim in the liquidation proceeding which was admitted by the Liquidator. Appellant is entitled for treatment of its dues as per Section 53 of the IBC. Appellant's dues having been dealt in the liquidation process as per the IBC, Appellant cannot insist pre-CIRP dues to be paid by the R-1 before electricity connection is energised/restored. The Successful Auction Purchaser has paid the entire sale consideration of 19.86 Crores. The NCLT has rightly relied on the Judgments of this Tribunal which has been referred to in the Order. Learned Counsel for the Respondent further submits that issue is now well settled by the Judgment of this Tribunal and Hon'ble Supreme Court. Learned Counsel for the Respondent also relies on a recent Judgment of this Tribunal in the matter of 'M/s. Yar....
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....the land sold to the Respondents no. 1, along with the certificates of sale is marked and annexed as ANNEXURE 5 (Colly)." 9. The Liquidator has also in the Status Report has given details of the distribution of the amount as per Section 53. Paragraph 14 of the Status Report gives the details of the amount distributed to various stakeholders as per Section 53. Para 14 of the Status Report is as follows: "14. That it is pertinent to mention here that the liquidator has strictly followed the waterfall mechanism as per Section 53 in distributing the realised amount. The distribution as per Section 53 is listed hereunder: TOTAL AMOUNT DISTRIBUTED IN LIQUIDATION AS PER SECTION 53 IS AS UNDER : Sl. No. Stakeholders under section 53 (1) Amount Admitted (Rs.) Amount Distributed (Rs.) 1 (a) CIRP Costs Paid 81,84,170 2 (a) Liquidation Costs Paid 2,09,98,318 3 (b) (i) 4 (b) (ii) 15,89,20,27,216 55,04,10,554 5 (c) 6 (d) 5,00,77,073 0 7 (e) (i) ....
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.... 'Chinar Steel Segments Centre Pvt. Ltd.' Vs. 'Samir Kumar Agarwal, Liquidator of Bhaskar Shrachi Alloys Limited (in Liquidation) and Anr.' in Comp. App. (AT) (Ins.) No. 1355/2022, decided on 11.10.2023. In the above case also, Successful Auction Purchaser filed an Application seeking direction to provide new electricity connection to the factory premises which Application was opposed by the Damodar Valley Corporation. Adjudicating Authority rejected the Application against which the Appeal was filed. One of the questions framed in the Appeal was as to whether Successful Auction Purchaser was entitled for the reliefs claimed. In Paragraph 37 of the Judgment of this Tribunal, reliance was placed on the two Judgments of the Hon'ble Supreme Court, which, according to this Tribunal fully covers the issue. Paragraphs 37 and 38 of the Judgment following has been stated: "37. The issues raised in the present Appeal are fully covered in favour of the Appellant by a recent judgment of the Hon'ble Supreme Court dated 11.09.2023 in Civil Appeal No.5556 of 2023- "Tata Power Western Odisha Distribution Limited (TPWODL) & Anr. vs. Jagannath Sponge Private Limited". Appellant in the abov....
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.... above-quoted observations from Embassy Property Developments Private Limited (supra) would confer jurisdiction on the tribunal constituted under the Code insofar as the appellant - Tata Power Western Odisha Distribution Limited is insisting on payment of the dues of the corporate debtor for restoration/grant of the electricity connection. The dues of the corporate debtor have to be paid in the manner prescribed in the resolution plan, as approved by the adjudicating authority. The resolution plan is approved when it is in accord with the provision of the Code. Thus, the issue of corporate debtor's dues falls within the fold of the phrase 'arising out of or in relation to insolvency resolution' under section 60(5)(c) of the Code. Therefore, we do not find any good ground and reason to interfere with the impugned judgment(s)/order(s) and hence, the present appeals are dismissed. Pending application(s), if any, shall stand disposed of." 38. In view of the law laid down by the Hon'ble Supreme Court in "Tata Power Western Odisha Distribution Limited" (supra), submission advanced on behalf of the Respondent- Damodar Valley Corporation cannot be accepted. The R....
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..... 1: Nil For Property No. 2: Subsequent to our MOD, the following transactions observed in EC 1. As per Doc No. 2611/2016 dated 15-6-2016, the mortgager has sold the property to the extent of 540 sq. yd. to private party, for worth of Rs. 9,72,000. 2. As per Doc No. 657/2015 dated 5-2- 2015, the mortgager has sold the property to the extent of 620.83 sq. yd. to the Executive Officer, Ramapally Gramapanchayat for worth of Rs. 12,42.000. 3. As per Doc No. 2721/2014 dated 5- 8-2014, the mortgager has sold the property to the extent of 204.75 sq. yd. to the Gramapanchayat Executive Officer, Ramapally for worth of Rs. 2,48,000. Details outstanding of dues of local Government (property tax. water sewerage, electricity bills, etc.) Rs. 83,17,152 (Rupees eighty-three lakhs seventeen thousand one hundred fifty-two only) Reserve price of property For Property No. 1: Rs. 77,63,000 For Property No. 2 Reserve price: Rs 5,83,37,000 (Rupees five crores eightythree lakhs thirtyseven thousand only) Total 28 nos. of machineries items reserve price: Rs. 3,25,28,000 (Rupees three crores twentyfive lakhs twentyeight thousand only) Terms and conditions 21. The successful bi....