JUDGEMENT

(Date: 14.03.2022) (Virtual Mode) {Per: Dr. Alok Srivastava, Member (Technical)} This appeal, filed under section 61 of the Insolvency and Bankruptcy Code, 2016 (hereafter called ‘IBC’), has been preferred by the Appellant against the order dated 8.12.2020 (hereinafter called the ‘impugned order’) passed by the Adjudicating Authority (National Company Law Tribunal, Mumbai) in IA No. 1203/2020 in the Company Petition bearing number CP(IB) 2119/MB/C-IV/2019.

2. The Appellant is aggrieved by the impugned order, which has, inter-alia, directed restoration of power connection to the Corporate Debtorfor getting a better resolution plan and ordered for reconnection of power supply of the Durgapur factory of Corporate Debtor within 15 days on deposit of current electricity dues from the date of initiation of CIRP without payment of past dues and any security deposit from the Corporate Debtor as it is only reconnection of disconnected connection.

3. It is stated in the Appeal that the Appellant and Respondent No. 1/Karthik Alloys Limited entered into a Power Supply Agreement dated 1.1.1997 to provide power supply to Respondent No. 1/Corporate Debtor for a contract demand of 10,000 KVA. The Corporate Debtor failed to make payments due for power supply and the accumulated dues became a large amount, whereupon the Appellant/DVC sent a notice dated 19.6.2019 for payment of dues amounting to Rs. 3,02,14,047 within 15 days from the date of the issue of the notice failing which the power supply line would be disconnected without any further notice to the Corporate Debtor (notice dated 19.6.2019 is attached at page 58 of the Appeal paperbook). Again, another notice dated 26.6.2019 (attached at page 59 of Appeal paperbook) was sent the Appellant to the Corporate Debtor for payment of Rs. 1,09,00,000 within 15 days from the date of issuance of the notice failing which the power supply line would be disconnected without any further reference to the Corporate Debtor. In response to the notices sent by DVC the power supply to corporate debtor’s Durgapur factory was disconnected on 14.9.2019.

4. A Company Petition bearing CP(IB) No. 2119/MB-IV/2019 under section 9 of the IBC, filed by the Operational Creditor Vedanth.com Worldwide Limited ,was admitted vide order dated 17.12.2019 of the Adjudicating Authority thereby initiating CIRP against the Corporate Debtor/Karthik Alloys Ltd. Later the Interim Resolution Professional (IRP) requested DVC to restore power supply to the Durgapur unit of the Corporate Debtor vide letter dated 12.2.2020 (attached at pp. 84-89 of the Appeal paperbook) stating that as power supply was a basic requirement for running the factory of the Corporate Debtor, it was a part of essential goods and services covered under regulation 32of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process of Corporate Persons) Regulations, 2016 (in short ‘CIRP Regulations),and therefore it should be reconnected/restored. In reply to this letter of the IRP, DVC vide letter dated 24.2.2020 (attached at pp. 90–91 of the Appeal paperbook) replied that regulation 32 of the CIRP Regulations’ do not apply in the present case and hence it cannot reconnect the electricity supply and requested the IRP to withdraw its letter dated 12.2.2020.

5. The Appellant has further stated that it has filed its claim amounting to Rs.27,78,95,386 (Rupees Twenty Seven Crores, Seventy Eight Lakhs, Ninety Five Thousand, Three Hundred Eighty Six Only) vide letter dated 16.1.2020 in the prescribed form under regulation 7 of the CIRP Regulations, 2016, which was accepted by the Interim Resolution Professional (in short IRP). He has also stated that the IRP had moved an interlocutory application in the company petition CP(IB) 2119/MB/C-IV/2019 before the Adjudicating Authority seeking directions to the Appellant to restore electricity connection at the Durgapur plant of the Corporate Debtor. In reply to this interlocutory applica