# In the matter of Narendra Singh Panwar vs. Pashchimanchal Vidyut Vitran Nigam Limited
And 2 Others WRIT - C No. - 26355 of 2022

> HC judgment dated 2023-01-12. Citation: TCN-2023-HC-00091. The writ petition challenges a demand notice for electricity dues issued to the directors of M/s…

- **Court:** HC
- **Order date:** 12 Jan 2023
- **Citation:** TCN-2023-HC-00091
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-new-delhi/narendra-singh-panwar-vs-pashchimanchal-vidyut-vitran-nigam-limited-and-2-others-ad179cbe

## Summary

### Background

The writ petition challenges a demand notice for electricity dues issued to the directors of M/s Trimurti Concast Pvt ltd, a company undergoing insolvency proceedings. The company defaulted on electricity payments, leading to the demand notice against its directors. The petitioner, one of the directors, argues that the insolvency resolution process and subsequent liquidation of the company extinguish the directors' liabilities. The electricity department contends that the directors provided personal guarantees for the company's dues, making them liable despite the insolvency proceedings.

## Facts

M/s Trimurti Concast Pvt ltd, a company, defaulted on electricity dues to Paschimanchal Vidyut Vitran Nigam Limited (PVVNL). An insolvency petition was filed against the company under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, and the company went into insolvency. The National Company Law Tribunal (NCLT) approved a resolution plan on 2022-03-22. PVVNL, as an operational creditor, had its claim considered during the resolution process. The electricity connection to the company was permanently disconnected on 2022-08-30, following a temporary disconnection on 2019-07-09. A demand notice dated 2022-06-30 was issued to Narendra Singh Panwar and Ashok Sharma, directors of the company, seeking recovery of the dues. Narendra Singh Panwar, one of the

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## Issues and analysis

### Issue 1: Whether the approval of a resolution plan under Section 31 of the Insolvency and Bankruptcy Code …

**Ratio:** The sanction of a resolution plan and finality imparted to it by Section 31 of the IBC

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**Reasoning:** The court relied on the Supreme Court's decisions in Vijay Kumar Jain vs. Standard

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**Interpretation:** Section 31 of the IBC provides for the approval of a resolution plan, which is

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**Application:** In this case, the court found that the approval of the resolution plan for M/s

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## Parties

- **Judges:** Sunita Ag…; Vipin Chandra…
- **Appellants:** Narendra Singh…
- **Respondents:** M/s Trimurti…; Pashchimanchal…

## Timeline

- **2019-07-09 — Temporary Disc…**: Temporary disconnection of electricity…
- **2019-12-24 — Commencement of…**: Insolvency proceedings commenced…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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