# In the matter of Tata Power Western Odisha Distribution Limited vs. Jagannath Sponge Private Limited

> NCLAT judgment dated 2023-08-08. Citation: TCN-2023-NCLAT-00299. This appeal was filed against the order dated April 18, 2023, passed by the National Company…

- **Court:** NCLAT
- **Order date:** 8 Aug 2023
- **Citation:** TCN-2023-NCLAT-00299
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/tata-power-western-odisha-distribution-limited-vs-jagannath-sponge-private-limit-0f3682fb

## Summary

### Background

This appeal was filed against the order dated April 18, 2023, passed by the National Company Law Tribunal, Cuttack Bench, Cuttack, in IA(IB) No. 14/CB/2023 arising out of CP(IB) No. 1174/KB/2018. The Corporate Insolvency Resolution Process (CIRP) was initiated against Jagannath Sponge Private Limited based on an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016. A resolution plan submitted by M/s Omkara Asset Reconstruction Company was approved by the Adjudicating Authority on August 6, 2021. The Appellant was informed on July 19, 2022, that the Resolution Plan had been approved. The Appellant filed C.A. (AT) Insolvency No. 1404 of 2022 challenging the order dated August 6, 2021, which was later withdrawn on November 25, 2022.

## Facts

Tata Power Western Odisha Distribution Limited (TPWODL) is the appellant, and Jagannath Sponge Private Limited is the respondent. The case involves a dispute over electricity dues. The Corporate Insolvency Resolution Process (CIRP) was initiated against Jagannath Sponge Private Limited based on an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016. A resolution plan submitted by M/s Omkara Asset Reconstruction Company was approved by the Adjudicating Authority. The Respondent requested the Appellant to supply electricity, but the Appellant claimed outstanding arrears of Rs. 13,46,19,931/-. The Respondent then filed an application seeking direction to the Appellant to provide electricity connection without insisting on payment of arrears. The

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## Issues and analysis

### Issue 1: Whether letter dated 08.12.2022 of 2nd respondent demanding Rs. 13,46,19,931/- against the …

**Ratio:** The principle applied is that an approved resolution plan is binding on all stakeholders,

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**Reasoning:** The Adjudicating Authority reasoned that since a Resolution Plan had been approved, it

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**Interpretation:** The interpretation is that once a resolution plan is approved under Section 31

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**Application:** The ratio and reasoning apply to the specific facts because the Appellant's

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** TATA POWER…
- **Respondents:** JAGANNATH SPONGE…
- **Advocates:** Anupam La…; Hasan Mu…; +2 more

## Timeline

- **2019-04-20 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) was initiated against Jagannath Sponge…
- **2021-08-06 — Resolution Plan…**: Resolution plan submitted by M/s Omkara Asset Reconstruction Company was approved by the…

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