AI Structured Summary
Not yet generated for this judgment
Judgment
28.01.2026 Heard Learned Counsel appearing for Appellant and Learned Counsel appearing for Respondents.
2 This Appeal has been filed against the order passed by Adjudicating Authority dated 14/10/2025 in I.A. No. 2611 of 2024. I.A. was filed by the successful bidder, praying for reliefs as quoted in Para 2 of the order, which is as follows :-
“2 (a) "Direct the Respondent no. 1 to immediately provide for a new connection of electricity, in favour of the Successful Bidder being Starlink Call Concepts Private Limited, in a time bound manner considering the contractual commitments and timelines issued by RIICO to the Successful Bidder.
b)Set aside the past dues and arrears of the Corporate Debtor as stated by Respondent no. 1 amounting to Rs. 76,99,421.27/- (Rupees Seventy-Six Lakh Ninety-Nine Thousand Four Hundred and Twenty-One and Twenty-Seven paisa);
c)Pass any other order / direction as may be deemed fit and proper in the present facts and circumstances."
The Adjudicating Authority by the Impugned Order has directed to provide/ restore electricity connection to the Applicant at the earliest. Aggrieved by the said order, this Appeal have been filed.
Ld. Counsel for Appellant submitted that Appellant, which is Jaipur Vidyut Vitran Nigam Ltd. had dues of Rs. 76,99,421.27 against the erstwhile Corporate Debtor and the Appellant is entitled to recover the said amount. It is submitted that the liberty be granted to the Applicant to approach the liquidator for the recovery of said amount.
5 Ld. Counsel for Respondent refuting the submission submitted that Applicant never filed its claim before the liquidator and in view of the claim, having not being filed, the claim has already been extinguished in law.
We have heard the Ld. counsel for Parties and perused the record. Adjudicating Authority has returned a finding that the Jaipur Vidyut Vitran Nigam Ltd. did not file any claim during any suitable stage of the proceeding. In paragraph 12 of the Judgement, following has been held.
“12.It is not disputed at all that the Respondent No. 1 the Jaipur Vidyut Vitran Nigam Limited did not file any claim during any suitable stage of the proceeding initiated under Section 9 against the Corporate Debtor. As far as the legal position as regard payment of dues, if any, to any Operational Creditor is concerned, whether they are pre CIRP dues or have arisen during the proceeding shall be dealt with in accordance with the provisions of IBC and Rules and Regulations made thereunder. Where the proceeding has reached the stage of liquidation the proceeds from the sale of the liquidation assets shall be distributed in accordance with the order of priority and within the time frame, and further in such manner as may be specified as per the provisions of Section 53 of IBC, 2016. In our view, none of the parties have any power to override the provisions of law. It is not out of place to mention that provisions of this code have an overriding effect over the provisions of any other law inconsistent there-with as provided under Section 238 of the Code. Even if any instrument/deed is executed between the parties, the terms thereof, if inconsistent with the provisions of the code, shall not be treated as having any force.”
When the Appellant has not filed any claim in the CIRP or the liquidation proceeding and in the liquidation proceeding, the Respondent has been declared as successful bidder, any claim which is not part of the liquidation proceeding has to be treated to be extinguished and cannot survive.
The Adjudicating Authority has taken correct view of the matter in Paragraph 12 as noticed above. We thus do not find an error in the order of the Adjudicating Authority directing the Applicant to provide/ restore the electricity connection, subject to condition as mentioned in Paragraph 14.
Ld. Counsel for Appellant submitted that Appellant be permitted to file a claim before the liquidator. We are of the view that when claim was not filed within the time there is no question of granting a liberty at this stage to file a claim. We thus are of the view that no case is made out to interfere in the order.
The Appellant should provide the necessary connection/ restore within sixty days.
Appeal is dismissed subject to above.
