# In the matter of Shree Rajasthan Syntex Ltd. vs. Chief Engineer (Commercial), Ajmer & Ors.

> NCLAT judgment dated 2025-03-11. Citation: TCN-2025-NCLAT-00169. This case involves an appeal against an order by the National Company Law Tribunal (NCLT),…

- **Court:** NCLAT
- **Order date:** 11 Mar 2025
- **Citation:** TCN-2025-NCLAT-00169
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/shree-rajasthan-syntex-ltd-vs-chief-engineer-dee6dd04

## Summary

### Background

This case involves an appeal against an order by the National Company Law Tribunal (NCLT), Jaipur Bench, which allowed Ajmer Vidyut Vitran Nigam Ltd. (AVVNL) to recover Fuel Surcharge (FS) and Special Fuel Surcharge (SFS) from Shree Rajasthan Syntex Ltd. (SRSL) for periods prior to the commencement of the Pre-Packaged Insolvency Resolution Process (PPIRP). The appellant, SRSL, contends that these charges are pre-insolvency claims that should have been part of the resolution plan and are now extinguished under Section 31(1) of the Insolvency and Bankruptcy Code (IBC), which provides for a 'clean slate' after the approval of a resolution plan. The respondents, AVVNL, argue that the FS and SFS are statutory charges under the Electricity Act, 2003, and the obligation to

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## Facts

Shree Rajasthan Syntex Ltd. (SRSL), the appellant, is a public listed company engaged in manufacturing synthetic spun yarns, cotton yarns, and polypropylene yarns. It initiated Pre-Packaged Insolvency Resolution Process (PPIRP) in 2022. Ajmer Vidyut Vitran Nigam Ltd. (AVVNL), the respondent, sought to recover Fuel Surcharge (FS) and Special Fuel Surcharge (SFS) from SRSL for periods prior to the PPIRP commencement. The Adjudicating Authority permitted AVVNL to recover these charges. SRSL contends that these charges are pre-insolvency claims that should have been part of the resolution plan approved on 22.08.2023. SRSL argues that AVVNL did not file any claim regarding FS and SFS during the claim submission period. The bills for FS and SFS were received by SRSL on

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## Issues and analysis

### Issue 1: Whether FS and SFS count as pre-insolvency liabilities that were erased when the resolution plan …

**Ratio:** The legal principle applied is that once a resolution plan is approved under Section 31

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**Reasoning:** The court reasoned that the FS and SFS charges are statutory dues under the Electricity

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**Interpretation:** The court interpreted Section 31 of the IBC to mean that only claims that

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**Application:** The court applied this principle to the facts of the case by holding that the

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## Parties

- **Judges:** Rakesh Kuma…; Naresh Sa…; +1 more
- **Respondents:** Shree Rajasthan…; Chief Engineer…
- **Advocates:** Krishnendu…; Anjaneya…; +8 more

## Timeline

- **2022-01-01 — Filing of CP No.…**: Appellant filed CP No. (IBPP)-01/54C/JPR/2022 before the Adjudicating Authority under…
- **2023-04-19 — Admission of PPIRP…**: The Adjudicating Authority admitted the PPIRP application and appointed Dr. Lekh Raj…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61(1) — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

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