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SABYASACHI BHATTACHARYYA
Dimension Steel And Alloys Limited – Appellant
Versus
Damodar Valley Corporation – Respondent
JUDGMENT
Sabyasachi Bhattacharyya, J. - The writ petitioner has primarily prayed for immediate restoration of the petitioner's electricity supply by the Respondent no. 1, the Damodar Valley Corporation (DVC).
2. The brief facts, shorn of unnecessary details, are:
3. The DVC, upon prior notice, disconnected the electricity supply to the factory premises of the petitioner no. 1-company on June 7, 2019.
4. On October 18, 2019, the petitioner no. 1 was admitted to a Corporate Insolvency Resolution Process (CIRP). On april 8, 2021, the Committee of Creditors approved the Resolution Plan. The NCLT approved the same on October 8, 2021.
5. Thereafter the Resolution Professional wrote to the DVC tendering payment of Rs. 7,45,608/- as per the approved Resolution Plan and requested reconnection of electricity, which request was reiterated by a later communication by the petitioner no. 1.
6. However, the DVC, by its letter dated November 25, 2021, demanded payment of Rs. 31,77,33,915/- as outstanding dues of electricity charges from the petitioner no. 1.
7. The learned Senior advocate appearing for the petitioners places reliance on Ghanshyam Mishra & Sons (P) Ltd. V. Edelweiss asset Reconstruction C
Pre-CIRP debts are extinguished upon approval of the Resolution Plan under the IBC, and the pendency of an appeal does not automatically stay the implementation of the approved Resolution Plan.
The 'Clean Slate' theory established by the Supreme Court in insolvency cases extinguishes all claims not included in the Resolution Plan, impacting the rights of creditors and other parties involved....
Approved resolution plan entitles corporate debtor to new electricity connection without liability for pre-CIRP dues of third-party lessor; IBC prevails over electricity laws, ensuring clean slate an....
Electricity supply is essential during corporate insolvency, and interrupting it violates IBC provisions.
Claims against a successful resolution applicant for dues not presented during CIRP are extinguished after approval of the resolution plan, confirming the clean slate principle.
An auction purchaser under the IBC is not liable to pay the outstanding dues left by the erstwhile consumer for the purpose of getting a new electricity connection from the DVC.
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