Uttarakhand Power Corporation Limited Vs Shyam Baba Developers & Builders Pvt. Ltd. (NCLAT Delhi)
NCLAT Delhi held that successful auction purchaser cannot be insisted to pay pre-CIRP electricity dues before restoring an electricity connection. Accordingly, appeal dismissed.
Facts- On an Application filed u/s. 7 by the UCO Bank against the Corporate Debtor M/s. Shree Shyam Pulp and Board Mills, Corporate Insolvency Resolution Process (CIRP) commenced by Order dated 27.03.2019. No Resolution Plan having been approved in the CIRP of the Corporate Debtor, the Adjudicating Authority directed for liquidation vide Order dated 16.12.2020. Liquidator made a public announcement dated 01.2020 inviting the claim. The Appellant filed a claim of Electricity Dues of amounting to ₹8,43,99,407/-.
In the seventh e-Auction held on 30.07.2021, the land and building of the Corporate Debtor was sold to M/s. Shyam Baba Developers & Builders Private Limited. Letter of Possession was issued to Respondent No. 1, the Successful Auction Purchaser on 03.09.2021. An application was filed by the Respondent No. 1 seeking directions to the Appellant to energise/restoring of the electricity connection. Adjudicating Authority after hearing both the parties allowed the Application and directed the Appellant to provide electricity connection as prayed for. Being aggrieved, the present appeal has been filed.
