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IN THE HIGH COURT OF ALLAHABAD
ARINDAM SINHA, PRASHANT KUMAR
Dharti Agro Industries Pvt. Ltd. – Appellant
Versus
Managing Director, Pashchimanchal Vidyut Vitran Nigam Ltd. – Respondent
| Table of Content |
|---|
| 1. factual background of the auction process and electricity connection issues. (Para 2 , 3 , 4 , 5 , 6) |
| 2. petitioner's argument on the overriding effect of the ib code over the electricity act. (Para 7 , 8 , 9 , 10 , 11 , 12 , 13 , 14 , 15 , 16 , 17) |
| 3. respondent's argument on the primacy of the electricity act in electricity supply. (Para 18 , 19) |
| 4. analysis of relevant provisions of the electricity act and ib code. (Para 21 , 22 , 23 , 24 , 26 , 30) |
| 5. the overriding effect of the ib code in cases of conflict with other laws. (Para 31 , 32 , 33 , 34 , 35) |
| 6. court’s conclusion and directives regarding electricity supply and debt recovery. (Para 41 , 42 , 43 , 44 , 45 , 46 , 47) |
| 7. final order granting writ petition and ordering electricity connection. (Para 48 , 49) |
JUDGMENT :
PRASHANT KUMAR, J.
1. Mr. Ashish Kumar, learned counsel appears for the petitioner and Mr. Kartikeya Saran, learned Additional Advocate General appears for the State-respondents.
2. The factual matrix of the case which has given rise to instant dispute are as under :-
The petitioner is a private company engaged in trading of steel products at Delhi. The petitioner came across an advertisement in th
The Court affirmed that the Insolvency and Bankruptcy Code, 2016 overrides the Electricity Act, 2003, preventing the recovery of pre-existing owner's dues from an auction purchaser.
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.
The main legal point established in the judgment is that the sale of a corporate debtor as a going concern in liquidation does not automatically transfer all pre-CIRP liabilities to the auction purch....
(1) Duty to supply electricity under Section 43 of 2003 Act is not absolute and is subject to such charges and compliances stipulated by Electric Utilities as part of application for supply of electr....
The auction purchaser is liable for the previous owner's electricity dues under the U.P. Electricity Supply Code 2005, as the statutory provisions impose a duty to verify such dues.
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