Case Law Details
Kalptaru Steel Rolling Mills Ltd Vs Southern Power Distribution Company of A.P. Ltd (NCLAT Delhi)
NCLAT Delhi held that the Corporate Debtor are mandatorily required to pay security deposit for restoration of high tension electricity connection.
Facts-
CIRP was initiated and resolution plan was approved. A Monitoring Committee was also constituted. The Chairman of the Monitoring Committee filed an application before the Adjudicating Authority, praying to issue direction to M/s Southern Power Distribution Company of A.P. Ltd. to immediately restore electricity connection of the Corporate Debtor. It was further prayed that the restoration be made without insisting for payment of any past dues or any fresh security deposit from the Resolution Applicant, as the supply of electricity is an essential and integral part of the resolution of the Corporate Debtor.
The Adjudicating Authority held that once plan is approved, parties upon which the plan is binding cannot rake up past liabilities by invoking law that is inconsistent with the provisions of the Code. It was further held that the Applicant is not entitled for restoration of electricity connection without making payment for security deposit.
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