TaxTMI 
TaxTMI 
2025 (6) TMI 1973
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....lement of their dues. Of these, the Electricity Department of the Union Territory of Puducherry/Respondent, was one. The claim of the Puducherry Electricity Department was of an amount of Rs.1,01,67,031/-. 3. The claims of various creditors came to be considered by the Tribunal and ultimately, at paragraph 5.5 of Resolution Plan ('RP') dated 06.08.2021, the NCLT directed the petitioner to pay a sum of Rs.7,74,780/- in full and final settlement of the entire liability of operational creditors, within 90 days, in priority. 4. An order came to be passed by the Tribunal on 06.12.2021 confirming the RP. The respondent has not chosen to contest the aforesaid RP and Mr.R.Sreedhar, who appears for the respondent would, on instructions, accede to the position that 1% of the dues as directed by the Tribunal has also been settled, within the time stipulated. To be noted the RP and order of the Tribunal directing implementation thereof, have been passed in August and December, 2021, respectively and as on date, the same have become final. 5. While so, and the petitioner has remitted the amount as directed by the NCLT, there has been a delay in providing for re-connection and h....
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....reconnection of H.T. Services for Unit III with Code No.447 and Unit IV with Code No.460. 8. A counter has been filed and upon completion of the pleadings, the matter is taken up for hearing. The submissions of Mr.Om Prakash, learned Senior Advocate, for Mr.R.Imayavaramban, for the petitioner are firstly, that the RP and order of the NCLT passed in 2021, have attained finality. The petitioner was directed to remit 1% of the outstanding dues which direction stands complied with. Hence, the insistence on settlement of the earlier demands is wholly contrary to the RP and the directions of the NCLT. 9. Secondly, despite the fact that 1% of the dues have been remitted, there has been no move by the respondent to effect re- connection which has prejudiced its business operations. He relies on the judgments of the Supreme Court in the case of Ghanashyam Mishra and Sons Private Limited Through the Authorized Signatory v Edelweiss Asset Reconstruction Company Limited through the Director and others [(2021) 9 SCC 657] and Tata Power Western Odisha Distribution Limited (TPWODL) & Anr v Jagannath Sponge Private Limited, Director [(2023 SCC Online SC 842)]. 10. Per contra, Mr.Sreedhar,....
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....nd the Resolution Plan proposed was approved. 15. As per the Resolution Plan, the Petitioner was to remit 1% of the admitted claims of the creditors in full and final settlement thereof. In other words, as against Rs.7,74,78,027/- being the sum total of the admitted statutory dues Rs.7,74,780/- was directed to be paid within 90 days, in priority, and before settlement of the financial creditors. Admittedly, the amount has duly remitted the same to the creditors, including to the Respondent, in time. There is no dispute on this account. 16. The Resolution Plan had been approved by the NCLT, and the operative portion of order dated 06.12.2021, qua the Electricity Department is at paragraph 18, Clause 5, extracted below:- . . . . 5 Upon approval of the Resolution Plan by the Hon'ble Adjudicating Authority, Old outstanding or due amount for license renewal / consent fee / land & building tax including payment of penalty and damages, if any, payable by the CD to the respective (Tamil Nadu / Pondicherry) State Electricity Department / Pollution Control Board / respective Commune Panchayat / Municipality and any other concerned department for the period upto the e....
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.... prayer for mandamus will not lie in light of order dated 10.09.2024 as we are of the considered view that the aforesaid order is a nullity in law. The writ petition is thus very much maintainable and we mould the prayer therein to one of certiorarified mandamus, to quash order dated 10.09.2024 passed by the respondent, and grant said prayer of certiorari, quashing the demand raised under that order. 23. We now advert to the plea for reconnection. On the aspect of reconnection, the respondent has relied on the 2018 Regulations which relate to Union Territories and which stipulates the obligations of the licensee and consumers for provision of efficient, cost effective and consumer friendly services. In particular, clause 9.12 and 9.13 refer to reconnection and read as follows:- '9.12 In case the consumer request for reconnection within a period of 6 months after disconnection, the Licensee shall reconnect the consumer's installation within 5 days of payment of past dues and reconnection charges. 9.13 In case the consumer requests for reconnection after 6 months of disconnection, the connection shall be reconnected only after all the formalities as required ....
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....part of the Petitioner or such other buyers, whether they will continue to run the Industries or not and or pay the past dues.' 26. Primarily, the respondent has relied upon the 2018 Regulations extracted above. We however are of the considered view that those Regulations cannot be pressed into service mutatis mutandis in the present circumstances, as they do not envisage a situation where the NCLT is involved and has approved a Resolution Plan. 27. In cases where the consumer has undergone the process of CIRP and the NCLT has approved a Resolution Plan stipulating the amount of dues to be remitted to a creditor, that consumer cannot be called upon to pay anything over and above what has been stipulated in the Resolution Plan. Hence, the pre-condition for reconnection under Clause 9.13 of the 2018 Regulations for 'payment of pending dues' would not arise or stand attracted in such cases. 28. We however agree that since, admittedly, the machinery as well as the equipment for provision of power has been lying idle for many years, the same would have to be revamped and all necessary technical concerns be addressed by the parties at the cost of the petitioner. 29. As far as....
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....he corporate debtor for the grant of an electricity connection in her/his name. In "Embassy Property Developments Private Limited vs. State of Karnataka and Others", this Court clarified that a decision by public authority etc. may fall within the jurisdiction of the tribunals constituted under the Code, where the issue relates to or arises out of the dues payable to an operational or financial creditor, by observing: "37...It will be a different matter, if proceedings under statutes like Income Tax Act had attained finality, fastening a liability upon the corporate debtor, since, in such cases, the dues payable to the Government would come within the meaning of the expression "operational debt" under Section 5(21), making the Government an "operational creditor" in terms of Section 5(2). The moment the dues to the Government are crystallised and what remains is only payment, the claim of the Government will have to be adjudicated and paid only in a manner prescribed in the resolution plan as approved by the adjudicating authority, namely, the NCLT." The above-quoted observations from Embassy Property Developments Private Limited (supra) would confer juri....