Punjab State Power Corporation Limited Vs Akums Lifesciences Limited (NCLAT Delhi)
NCLAT Delhi held that Insolvency and Bankruptcy Code, 2016 [IBC] would prevail over Electricity Act. Thus, power distribution company cannot insist on the payment of arrears for restoration of the electricity connection and such a matter would fall within the ambit of Section 60(5)(c) of the IBC, 2016.
Facts- The present appeal has been filed by Punjab State Power Corporation Limited against the order of NCLT filed under Section 60(5) of the Insolvency and Bankruptcy Code, 2016 by Akums Lifesciences Limited (earlier known as “Parabolic Drugs Limited”, hereinafter referred as “Corporate Debtor” or as “Respondent”), wherein the Ld. NCLT nullified the outstanding dues payable to the Appellant for the period prior to initiation of Corporate Insolvency Resolution Process.
Conclusion- The plain reading of the above provisions of Section 60(5)(c) clearly indicates that the NCLT is empowered to adjudicate any question of priorities or any question of law or facts arising out of or in relation to the insolvency resolution of the Corporate Debtor.
Meghalaya High Court in Reliance Infratel Ltd. and Anr. v. State of Meghalaya and Ors [WP(C) No. 238 of 2023] wherein the Court has affirmed the overriding nature of IBC Code, 2016 over the Electricity Act, 2003 and has held that IBC would prevail over Electricity Act.
