Case Law Details
Executive Engineer of Uttar Gujrat VIJ Company Ltd. Vs Devang P Samapat RP of M/s. Kanoovi Foods Pvt. Ltd. (NCLAT Delhi)
If the electricity consumption was for manufacturing and output of the Biscuits which is the normal operation of the Corporate Debtor, in that case dues arising from such supply of electricity during moratorium would have to be paid during moratorium. Sub-section 2A of Section 14 read with Regulations referred above makes it clear that if the supply is for managing the operations of the Corporate Debtor the supply cannot be interrupted during moratorium except where Corporate Debtor has not paid dues arising from such supply during the moratorium period. In present matter the consumption is stated to have been for running of office and security of Corporate Debtor. In that case, the same will be part of the CIRP Costs which can be recovered when the Resolution Plan is approved or would form part of Section 53 if the Liquidation has been initiated.
As such, for these reasons, in the facts of the matter, we are unable to disagree with the Adjudicating Authority when in its order dated Company Appeal (AT) (Ins.) No. 371 & 372 of 2021 21st October, 2020 it was observed that the electricity charges during CIRP would form part of CIRP Costs.
FULL TEXT OF THE NCLAT JUDGMENT/ORDER
Heard Mr. Anal S. Shah, Advocate for the Appellant and the Liquidator-Mr. Devang P Sampat. Mr. Devang P Sampat has been arrayed as Resolution Professional of Kanoovi Foods Pvt. Ltd. It is stated that now Liquidation Orders have been passed and the Corporate Debtor-M/s. Kanoovi Foods Pvt. Ltd. is in Liquidation.
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