# In the matter of Reliance Infratel Limited & Ors. vs. State of Meghalaya & Ors.

> HC judgment dated 2024-06-05. Citation: TCN-2024-HC-00076. The case involves a writ petition filed by Reliance Infratel Limited (RITL), which was admitted to…

- **Court:** HC
- **Order date:** 5 Jun 2024
- **Citation:** TCN-2024-HC-00076
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-new-delhi/reliance-infratel-limited-ors-vs-state-of-meghalaya-ors-4173af75

## Summary

### Background

The case involves a writ petition filed by Reliance Infratel Limited (RITL), which was admitted to insolvency in 2019. A resolution plan was approved by the NCLT and the Supreme Court, with Reliance Projects and Property Management Solutions Ltd. (RPPMSL) taking over RITL in December 2022. Meghalaya Power Distribution Corporation Ltd. (MePDCL) sought recovery of electricity dues from RITL for periods prior to the takeover, threatening disconnection and refusing new connections. RITL challenged MePDCL's demand notice, arguing that the dues were prior to the effective date of the takeover and should be extinguished under the approved resolution plan and the Insolvency and Bankruptcy Code (IBC).

## Facts

Reliance Infratel Limited (RITL) was admitted to insolvency on 2019-05-07. A resolution plan was approved by the NCLT and the Supreme Court. Reliance Projects and Property Management Solutions Ltd. (RPPMSL) took over RITL on 2022-12-22. Meghalaya Power Distribution Corporation Ltd. (MePDCL) sought recovery of electricity dues from RITL for periods prior to 2022-12-22. MePDCL threatened to disconnect existing electricity connections and refused to provide new connections. RITL challenged MePDCL's demand notice dated 2023-06-12. The Resolution Professional had informed the State Electricity Board of the commencement of the insolvency proceedings on 2019-07-25 and requested submissions of claims. MePDCL did not file any claims during the insolvency process. The NCLT

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## Issues and analysis

### Issue 1: Whether the respondent Corporation is entitled to recover the outstanding amounts from the …

**Ratio:** Section 31(1) of the Insolvency and Bankruptcy Code, 2016 (I&B Code) provides that an

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**Reasoning:** The court reasoned that the approved resolution plan was binding on all creditors,

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**Interpretation:** The court interpreted Sections 31 and 238 of the IBC to mean that an approved

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**Application:** The court applied the ratio to the facts of the case, finding that MePDCL's

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## Parties

- **Judges:** H. S. Than…
- **Appellants:** M/s Reliance…
- **Respondents:** Reliance Infratel…; State of Me…

## Timeline

- **2019-05-07 — Insolvency Ad…**: Reliance Infratel Limited…
- **2019-07-25 — Notification…**: The Resolution Professional informed the State Electricity Board of the commencement of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 31 — Approval of resolution plan](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-31)

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