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Tata Power Western Odisha Distribution ... vs Jagannath Sponge Private Limited ... on 11 September, 2023

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                                       IN THE SUPREME COURT OF INDIA
                                        CIVIL APPELLATE JURISDICTION
                                        CIVIL APPEAL NO. 5556/2023



     TATA POWER WESTERN ODISHA                                           .....       APPELLANT(S)
     DISTRIBUTION LIMITED (TPWODL) &
     ANR.

                                               VERSUS

     JAGANNATH SPONGE PRIVATE LIMITED                                    .....       RESPONDENT(S)
     DIRECTOR


                                                  O R D E R

In our opinion, the legal issue is covered by the judgment of this Court in “Paschimanchal Vidyut Vitran Nigam Ltd. vs. Raman Ispat Private Limited and Others”1 and the order of this Court in “Southern Power Distribution Company of Andhra Pradesh Limited vs. Gavi Siddeswara Steels (India) Pvt. Ltd. and Another.”2 The appellant – Tata Power Western Odisha Distribution Limited cannot insist on payment of arrears, which have to be paid in terms of the waterfall mechanism, for grant of an electricity connection. However, the successful resolution applicant will have to comply with the other requirements for grant of electricity connection. The clean slate principle would stand negated if the successful resolution applicant is asked to pay the arrears payable by the corporate debtor for the grant of an electricity connection in her/his name.

Digitally signed by SWETA BALODI Date: 2023.09.15 09:51:16 IST Reason:

In “Embassy Property Developments Private Limited vs. State 1 2023 SCC Online SC 842.

2 Order dated 06th September, 2023 in Civil Appeal No.5716-5717/2023.  2 of Karnataka and Others”3, this Court clarified that a decision by public authority etc. may fall within the jurisdiction of the tribunals constituted under the Code, where the issue relates to or arises out of the dues payable to an operational or financial creditor, by observing:

“37...It will be a different matter, if proceedings under statutes like Income Tax Act had attained finality, fastening a liability upon the corporate debtor, since, in such cases, the dues payable to the Government would come within the meaning of the expression “operational debt” under Section 5(21), making the Government an “operational creditor” in terms of Section 5(2). The moment the dues to the Government are crystallised and what remains is only payment, the claim of the Government will have to be adjudicated and paid only in a manner prescribed in the resolution plan as approved by the adjudicating authority, namely, the NCLT.” The above-quoted observations from Embassy Property Developments Private Limited (supra) would confer jurisdiction on the tribunal constituted under the Code insofar as the appellant – Tata Power Western Odisha Distribution Limited is insisting on payment of the dues of the corporate debtor for restoration/grant of the electricity connection. The dues of the corporate debtor have to be paid in the manner prescribed in the resolution plan, as approved by the adjudicating authority. The resolution plan is approved when it is in accord with the provision of the Code. Thus, the issue of corporate debtor’s dues falls within the fold of the phrase ‘arising out of or in relation to insolvency resolution’ under section 60(5)(c) of the Code.

Therefore, we do not find any good ground and reason to interfere with the impugned judgment(s)/order(s) and hence, the

3 2020 13 SCC 308.

present appeals are dismissed.

Pending application(s), if any, shall stand disposed of.

..................J. (SANJIV KHANNA) ..................J. (S.V.N. BHATTI) NEW DELHI;

SEPTEMBER 11, 2023.

ITEM NO.26                COURT NO.3                    SECTION XVII-A

               S U P R E M E C O U R T O F       I N D I A
                       RECORD OF PROCEEDINGS

                    Civil Appeal   No(s).   5556/2023

TATA POWER WESTERN ODISHA DISTRIBUTION LIMITED (TPWODL) & ANR. APPELLANT(S) VERSUS JAGANNATH SPONGE PRIVATE LIMITED DIRECTOR RESPONDENT(S) (FOR ADMISSION and IA No.179089/2023-GRANT OF INTERIM RELIEF ) Date : 11-09-2023 This appeal was called on for hearing today. CORAM :

HON'BLE MR. JUSTICE SANJIV KHANNA HON'BLE MR. JUSTICE S.V.N. BHATTI For Appellant(s) Mr. Shyam Divan, Sr. Adv.

Mr. Hasan Murtaza, AOR For Respondent(s) UPON hearing the counsel, the Court made the following O R D E R The appeals are dismissed in terms of the signed order. Pending application(s), if any, shall stand disposed of.

    (BABITA PANDEY)                             (R.S. NARAYANAN)
    COURT MASTER (SH)                         ASSISTANT REGISTRAR
               (Signed order is placed on the file)