AI Structured Summary
Not yet generated for this judgment
Judgment
O R D E R
This Company Appeal has been preferred by the Kerala State Electricity Board Limited being aggrieved as against the impugned order dated 29.01.2021 passed by National Company Law Tribunal, Kochi Bench approving the Resolution Plan in respect of the Corporate Debtor M/s Kerala Paper Products Ltd., which came to be admitted into Corporate Insolvency Resolution Process (CIRP).
In the Appeal in question, the Impugned Order, which has been challenged, as it was passed by the Learned Adjudicating Authority, is the one by virtue of which the Learned Adjudicating Authority had approved the Resolution Plan as submitted by the Resolution Professional except for relief and concessions under Chapter XII, M/s Kerala Industrial Infrastructure Development Corporation (KINFRA), a statutory body of the Government of Kerala being the Successful Resolution Applicant (SRA). The Resolution Plan thus submitted by the Resolution Professional under Section 30(6) and 31(1) of the Insolvency and Bankruptcy Code, 2016, has been approved by the Impugned Order, subject to certain limitation qua chapter XII which has been imposed in the order impugned.
The grievance of the Appellant has been that the Resolution Plan does not provide for all the dues to the Appellant and is violative of Electricity Act, 2003. Be that as it may, the parties have exchanged their pleadings.
When the matter was heard today, both Appellant and Respondent 3 Counsels have made a mention that this matter may be decided in terms of IA/573/2024, which they had preferred in the instant Appeal wherein they have submitted that the dispute raised by Appellant is a dispute between two Government/Public Sector Undertaking entities and that based on the Order of the Government of Kerala in GO(Ms) No.21/2021/P-ARD dated 15th September 2021, which stipulates that when there happens to be a dispute between two statutory bodies, which are instrumentality of State and a creation of statute, the dispute ought to be decided by the Special Power Committee, which is to be constituted in accordance with the stipulations prescribed under the Government Order No.21 of 2021/P-ARD dated 15th September 2021, they wish to settle their dispute accordingly. Thus, it is seen that a consensus has been arrived at between the parties, as expressed by the respective Counsels by virtue of I.A.No.573/2024. The aforesaid proposition of mode of dispute resolution between two Government entities has also been fortified by the Hon’ble Apex Court in Judgment reported in 2004(6) SCC Page 437 wherein in para 3 it has been observed that where there are controversies between the Ministries or, between a Ministry and a Public Sector Undertaking of Government of India or between Public Sector Undertaking themselves, it ought not to be raised or agitated before the Courts, but rather a High Power Committee is to be constituted so that the dispute is resolved without resorting to time consuming and expensive litigation which can be avoided.
The said principles laid down in the aforesaid Judgment was laid by yet another prior Judgment of 1995 Supp (4) SCC Page 541 of Oil and Natural Gas Commission v. CCE, the relevant paragraphs are extracted hereunder:
3.The purpose of setting up this High-Powered Committee was to ensure that, as far as possible, the controversies between a Ministry and a Ministry of the Government of India, a Ministry and a Public sector undertaking of the Government of India and between public sector undertakings themselves are resolved by recourse to the High-Powered Committee and that time consuming and expensive litigation is avoided.
4.There are some doubts and problems that have arisen in the working out of these arrangements which require to be clarified and some creases the words “and recourse to litigation should be avoided”. It is clear that the order of this Court is not to the effect that – nor can that be done – so far as the Union of India and its statutory corporations are concerned, their statutory remedies are effaced. Indeed, the purpose of the constitution of the High-Powered Committee was not to take away those remedies. The relevant portion of the order reads: (SCC pp. 541-42, Para 3)
“3.We direct that the Government of India shall set up a committee consisting of representatives from the Ministry of Industry, the Bureau of Public Enterprises and the Ministry of Law, to monitor disputes between Ministry and Ministry of the Government of India, Ministry and Public sector undertakings of the Government of India and public sector undertakings in between themselves, to ensure that no litigation comes to court or to a tribunal without the matter having been first examined by the Committee and its clearance for litigation. The Government may include a representative of the Ministry concerned in a specific case and one from the Ministry of Finance in the Committee. Senior officers only should be nominated so that the Committee would function with status control and discipline.” (emphasis supplied)
a It is abundantly clear that the machinery contemplated is only to ensure that no litigation comes to court without the parties having had an opportunity of conciliation before an in-house committee.”
Owing to the aforesaid vital principles as enunciated by the Judicial precedents coupled with the fact that the parties to the Appeal are open to settle their controversy based on the guidelines of the aforesaid Government Order No.21/2021/P-ARD/ dated 15th September 2021, this Appeal is closed, leaving it open for the parties to get their dispute and rights settled by the Committee which has been intended to be constituted to resolve the dispute in terms of the Government Order. Subject to the above the Company Appeal would stand disposed of.