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Tribunals and CommissionsFull Bench(2022) 10 NCLAT CK 0030

Rathi Steel and Power Ltd vs Gridco Ltd

National Company Law Appellate Tribunal · Decided on 17 October 2022

HON’BLE JUDGES
Ashok Bhushan, Chairperson · Dr. Alok Srivastava, Member (T) · Barun Mitra, Member (T)
RESULT
Dismissed
CASE NUMBER
Company Appeal (AT) (Ins) No. 1211 Of 2022 & I.A. No. 3674 Of 2022

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Judgment

5 paragraphs · 330 words
1.

Heard Learned Counsel for the Appellant.

2.

This Appeal has been filed against the order passed by the Adjudicating Authority (National Company Law Tribunal), Cuttack Bench, Cuttack, by which Application under Section 9 filed by the Appellant has been rejected. The Appellant claims to be Operational Creditor engaged in the business of manufacturing TMT bars/rods having a captive Power Plant. The Operational Creditor supplied power to the Corporate Debtor from its Captive Generating (CGP) since 23.03.2009. The Appellant claiming an amount of Rs. 1,46,74,996/- due on the Corporate Debtor filed Section 9 Application. Corporate Debtor filed a Reply in Section 9 Application stating that Operational Creditor owed electricity duty to the Government of Orissa and the amount of Rs. 1,46,74,996/- have been remitted to the Government of Orissa towards duty vide challan dated 23.04.2018.

3.

Shri P. Nagesh, Learned Senior Counsel for the Appellant submits that the payment of the amount by the Corporate Debtor shall not discharge the operational debt of the Appellant. He submits that Appellant has already filed a Writ Petition in the Orissa High Court which is pending.

4.

The Adjudicating Authority taking the view that the amount has been remitted by the Corporate Debtor to the Government of Orissa towards duty which was to be paid by the Appellant, rejected Section 9 Application. We are of the view that no error has been committed by the Adjudicating Authority rejecting Section 9 Application. The amount has been paid to the Government by the Corporate Debtor towards duty owed by the Appellant. It is not a case that the Corporate Debtor was insolvent and was unable to clear its dues. The entire amount has been paid. The question of adjustment and the challenge in the Writ Petition are all questions which, if any, decided shall take its due course in accordance with law but we do not find any error in the order of the Adjudicating Authority rejecting Section 9 Application.

5.

The Appeal is dismissed.