Pinax Paper Mills Private Limited Vs State of West Bengal & Anr. (Calcutta High Court)
The petitioner challenged the demand raised by the West Bengal Electricity Distribution Company Limited (WBSEDCL) for Late Payment Surcharge (LPSC). The petitioner was the successful resolution applicant under a Resolution Plan approved by the National Company Law Tribunal (NCLT) in respect of India Pulp 85 Paper Private Limited. Following approval of the Resolution Plan, the petitioner requested WBSEDCL to provide construction power to its premises. WBSEDCL, by communication dated 6 May 2025, required the petitioner to pay outstanding electricity charges of Rs. 1,29,73,806.48 and LPSC of Rs. 1,27,00,838.30 as a pre-condition for a fresh electricity connection. During the proceedings, WBSEDCL did not press its claim for the outstanding electricity charges, and the dispute remained confined to the LPSC demand.
The petitioner contended that, under the Insolvency and Bankruptcy Code, 2016, no claim for outstanding electricity charges or LPSC could survive after approval of the Resolution Plan unless specifically provided therein. It argued that, by operation of the “clean slate principle,” all claims not included in the Resolution Plan stood extinguished. The petitioner also submitted that WBSEDCL’s own records, including the bill dated 2 August 2022 and its report, showed that the pre-disconnection dues already included LPSC, establishing that the LPSC claim had arisen before the Corporate Insolvency Resolution Process (CIRP).
