ASHOK BHUSHAN, J.

This Appeal has been filed against order dated 21.02.2023 passed by

the Adjudicating Authority (National Company Law Tribunal), Allahabad

Bench, Prayagraj in I.A. No. 219/2022 in CP (IB) No.140/ALD/2017. I.A. No.

219/2022 filed by the Respondent, Successful Auction Purchaser having been

allowed by the Adjudicating Authority, Appellant feeling aggrieved by the order

has come up in this Appeal. Brief facts of the case necessary to be noticed for

deciding this Appeal are:

(i)

Corporate Insolvency Resolution Process against the Corporate

Debtor, Shashi Oil and Fats Pvt. Ltd. commenced by the Adjudicating

Authority on a Section 7 application filed by a Financial Creditor.

(ii)

The order of liquidation of the Corporate Debtor was passed by the

Adjudicating Authority on 21.02.2020.

(iii)

The Liquidator published E-auction Sale Notice dated 12.08.2020 on

as is where is basis, as is what is, whatever there is and without

recourse basis.

(iv)

E-auction was held on 29.08.2020 and Respondent No.1 was held to

be highest Bidder for an amount of Rs.3,78,00,000/-. The Respondent

No.1 was declared as Successful Auction Purchaser by the Liquidator

by email dated 29.08.2020.

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(v)

On 25.09.2020, the Respondent No.1 deposited the entire sale

consideration along with the GST. Sale Certificate dated 28.09.2020

was issued as well as Possession Certificate.

(vi)

The Respondent No.1 made an application to the Appellant for new

electricity connection for the premises, which was rejected by the

Appellant on the ground that there is demand of electricity dues of

Rs.39,15,625/- against the erstwhile Corporate Debtor and unless the

said amount is paid no new electricity connection can be given.

(vii)

After rejection of the prayer of new electricity connection, the

Successful Auction Purchaser i.e. Respondent No.1 filed an C.A. No.

219/2022 in the CP (IB) No.140/ALD/2017, in which following

prayers were made:

“a) Allow the present application;

b) Kindly, pass an ex parte ad interim order directing

Paschimanchal Vidyut Vitran Nigam Ltd. Not to take

any coercive steps over the property Khasra No. 38.

Village Sardhan, Budhana Road, Khatauli, District

Muzaffarnagar, Uttar Pradesh during the pendency of

the instant application;

c) pass an order declaring that Paschimanchal Vidyut

Vitran Nigam Ltd. Is not entitled to claim any dues over

the property Khasra No. 38, Village Sardhan, Budhana

Road, Khatauli, District Muzaffarnagar, Uttar Pradesh.

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d) Consequently, direct Paschimanchal Vidyut Vitran

Nigam Ltd. to grant electricity connection to Applicant

No.2 i.e. Ezwaste Recycling Private Limited.

e) Pass such other or further order(s) as may be

deemed fit and proper the facts and circumstances of

the instant case.”

(viii)

The Appellant filed a counter affidavit to the CA controverting the

contentions raised by the Applicant. It was contended on behalf of the

Appellant that the property was purchased by the Respondent No.1 on

“as is where is, as is what is, whatever there is and without recourse

basis” and if they exercised due diligence, they would have known that

there are electricity dues. They placed reliance on Clause 4.3(f)(i) of

Electricity Supply Code, 2005 and submitted that unless the dues of

erstwhile consumer are paid no new connection can be granted in the

premises.

(ix)

The Adjudicating Authority heard both the parties and by the

impugned order dated 21.02.2023 allowed the application. The

Adjudicating Authority after considering the relevant judgments of the

Hon’ble Supreme Court and this Tribunal recorded its conclusion in

Para 15 of the judgment and issued directions in Para 16. The

conclusion and directions of the Adjudicating Authority are as follows:

“15. Relying on the judicial pronouncements as

discussed in above para, we hold that right of

Paschimanchal Vidyut Vitran Nigam Ltd. to recover

outstanding

dues

of

pre-CIRP

period

is

now

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extinguished due to CIRP process getting completed

and liquidation of Corporat