Assam Power Distribution Company Ltd. Vs Meena Sureka (NCLAT Delhi)
The appeal arose from the order dated 27 May 2025 passed by the National Company Law Tribunal (Guwahati Bench) in an application filed under Section 60(5) read with Section 35 of the Insolvency and Bankruptcy Code, 2016, whereby the NCLT directed the Appellant, Assam Power Distribution Company Limited (APDCL), to pay the admitted outstanding amount of ₹37,66,906.80, together with applicable interest from 31.12.2014, to the Liquidator of Brahmaputra Rolling Mills Pvt. Ltd. The NCLT rejected the Appellant’s plea that the amount should be set off against dues allegedly payable to it by other companies belonging to the same industrial group.
The Appellant contended that it had supplied electricity to the Brahmaputra Group of Industries and that several group entities owed it substantial admitted amounts. According to the Appellant, the principal issue was whether it could be compelled to pay the admitted amount to the Corporate Debtor despite the applicability of the Group of Companies Doctrine read with Regulation 29 of the IBBI (Liquidation Process) Regulations, 2016. It argued that the group had functioned as a single economic entity and relied upon the Supreme Court judgment in Bharti Airtel Ltd. & Anr. v. Vijay Kumar V. Iyer & Ors. concerning the doctrine of set-off. The Appellant further submitted that the NCLT had interpreted Regulation 29 too narrowly, failed to account for its fiduciary obligations as a government-owned utility, and erred in directing payment of interest from 31.12.2014 despite disputed cross-claims. It also asserted that no demand had been raised by the Corporate Debtor prior to the commencement of the insolvency process.
