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Judgment
03.04.2025: Heard counsel for the Appellant as well as counsel for the Respondent.
This appeal has been filed against the order dated 23.01.2025 passed by the National Company Law Tribunal, Mumbai Bench by which in IA No. 3292 of 2024 filed by the Successful Auction Purchaser has been allowed. The corporate debtor has been directed to be liquidated and in the liquidation proceedings the respondent herein emerged as Successful Auction Purchaser. Auction was completed on 06.10.2023 after the auction the Auction Purchaser/ respondent filed an application on 13.04.2024 in which the following prayers were made:-
“The present Interlocutory Application has been filed by the Applicant seeking following reliefs:
a. Direct the Respondent No. 7 and 8 to record the release of all charges over the Auction Property being Land·& Building at Survey No. 82 84, 85, and Ill located at Nurpura, Village Baska, Baska Halo/ Road, Tai -Halo/, Panchmahal 389 350.
b. Direct the Respondent No. 1 and 2 to restore electricity connection at the Auction property being Land & Building at Survey No. 82 84, 85, and Ill located at Nurpura, Village Baska, Baska Halol Road, Tal - Halol, Panchmahal 389 350.
c. Any other order that this Hon'ble Tribunal may deem fit in the facts and circumstances of this case.”
The Adjudicating Authority by the impugned order allowed prayer-b that is a direction to the appellant to restore an Electricity Connection at the auctioned property. Aggrieved by the said order the appellant has filed this appeal.
Ld. Counsel for the appellant challenging the order submits that the order of the Adjudicating Authority is without jurisdiction he has placed reliance on the judgments of the Hon’ble Supreme Court in Gujarat Urja Vikas Nigam Ltd. Vs. Mr. Amit Gupta & Ors. The Ld. Counsel for the appellant has relied on ground-C which is as follows:
“C. Because in view of laid down by Hon’ble Supreme Court in Gujarat Urja Vikas Nigam Ltd. Vs. Mr. Amit Gupta & Ors. reported in (2021) 7 SCC 209 the proceedings before the Adjudicating Authority were not maintainable. The relevant Para 72 of the said judgment is as follows:
“74.Therefore, we hold that the RP can approach NCLT for adjudication of disputes that are related to the insolvency resolution process. However, for adjudication of disputes that arise dehors the insolvency of the corporate debtor, the RP must approach the relevant competent authority. For instance, if the dispute in the present matter related to the non-supply of electricity, the RP would not have been entitled to invoke the jurisdiction of NCLT under IBC. However, since the dispute in the present case has arisen solely on the ground of the insolvency of the corporate debtor, NCLT is empowered to adjudicate this dispute under Section 60(5)(c) of IBC.”
Ld. Counsel for the respondent refuting the submissions contend that the issues raised by the in the appeal is fully covered by judgment of this Tribunal in CA (AT) (Ins) No. 346 of 2023, M/s Uttarakhand Power Corporation Limited (UPCL) v/s M/s Shyam Baba Developers & Builders Pvt. Ltd. where directions issued by the Adjudicating Authority directing for Electricity Connection has been up-held by the Appellate Tribunal. It is further submitted by the respondent that the appellant has filed his claims in the liquidation proceeding and as per the Section 53 the amount has already been allocated.
We have considered the submissions made by the parties and perused the records. There is no dispute that the respondent became the Successful Auction Purchaser in the liquidation proceeding of the Corporate Debtor. The appellant has already filed a claim in the liquidation proceeding and his claim has been dealt with in the liquidation proceedings. The submission which has been pressed by the Appellant is that the Adjudicating Authority has no jurisdiction to consider the application filed by the Successful Purchaser. Reliance has been placed in Gujarat Urja Vikas Nigam (supra). There cannot be any dispute to the preposition laid down by the Hon’ble Supreme Court that the ‘adjudication of dispute that arise dehors the insolvency of corporate debtor cannot be entertained.’ The present is a case where application arose of auction purchase arising out of the liquidation proceeding, hence is fully covered by the Section 60(5)(c) of the Insolvency and Bankruptcy Code. We thus are of the view that submission of the appellant cannot be accepted that Adjudicating Authority has no jurisdiction to entertain the application. The issues raised in the appeal is fully covered by the judgment of this Tribunal in M/s Uttarakhand Power Corporation Limited. We thus are of the view that no grounds have been made out in the appeal. Appeal is dismissed.