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SABYASACHI BHATTACHARYYA
Vasavi Industries Limited – Appellant
Versus
West Bengal State Electricity Distribution Company Limited – Respondent
JUDGMENT
Sabyasachi Bhattacharyya, J. - In the present writ petition, the petitioners have prayed primarily for restoration of their electricity connection, which was disconnected by the respondent-distribution licensee on November 29, 2014 because of non-payment of electricity dues by the petitioner.
2. The learned Senior advocate appearing for the petitioners contends that the documents filed by the West Bengal State Electricity Distribution Company Limited (in short, WBSEDCL) have no relevance in the matter.
3. The learned Senior advocate for the petitioners argues that in respect of the petitioner no.1-Company, a Corporate Insolvency Resolution Process (CIRP) was initiated vide Order dated October 28, 2019 under the Insolvency and Bankruptcy Code, 2016 (for the sake of brevity, 'the IBC'), on an application filed under Section 7 of the IBC by the Stressed assets Stabilisation Fund. Pursuant to the order of the National Company Law Tribunal (NCLT), amravati Bench, the Resolution Professional appointed by the adjudicating authority called for claims from creditors vide Public announcement dated October 31, 2019, which was widely circulated. Subsequently, the Resolution Plan was pass
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....
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.
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....
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.
Purchaser in going concern liquidation sale on 'as is where is' basis liable for pre-existing electricity dues; cannot seek waiver under IBC post-liquidation closure despite Section 53 distribution.
Past liabilities of a corporate debtor cannot be imposed on the auction purchaser when seeking a new connection, based on the clean slate principle under insolvency law.
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