# In the matter of Uttarakhand Power Corporation Ltd. & Ors. vs. Shirdi Industries Ltd. & Ors.

> NCLAT judgment dated 2024-09-19. Citation: TCN-2024-NCLAT-00190. The case involves appeals against an order by the Adjudicating Authority (National Company…

- **Court:** NCLAT
- **Order date:** 19 Sept 2024
- **Citation:** TCN-2024-NCLAT-00190
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/uttarakhand-power-corporation-ltd-ors-vs-shirdi-industries-ltd-ors-04bf6227

## Summary

### Background

The case involves appeals against an order by the Adjudicating Authority (National Company Law Tribunal, Mumbai Bench-I) concerning a Corporate Insolvency Resolution Process (CIRP) for M/s Shirdi Industries Ltd. The Adjudicating Authority allowed an application by the Respondent and disposed of applications by the Appellant, Uttarakhand Power Corporation Ltd. (UPCL), holding them infructuous. UPCL appealed, seeking to set aside the order and direct the Respondents to pay outstanding electricity dues. The core dispute revolves around the adjustment of pre-CIRP electricity dues against current dues and the interpretation of the resolution plan regarding payment of these dues.

## Facts

M/s Shirdi Industries Ltd. was admitted into CIRP on 2017-05-18. At the commencement of CIRP, the Corporate Debtor owed Rs 1.76 crore to Uttarakhand Power Corporation Ltd. (UPCL) for electricity bills from April and May 2017. The Respondent paid these dues on 2017-05-19 and 2017-06-19, after the CIRP commencement date. The resolution plan, approved on 2017-12-12, stipulated that pre-CIRP electricity dues of UPCL would be paid in eight installments from June 2022 to March 2024. UPCL did not file its claim during the CIRP proceedings. The Corporate Debtor filed an application seeking directions for stakeholders to follow the resolution plan. UPCL attempted to disconnect the electricity supply due to non-payment of current bills. The Adjudicating Authority directed UPCL

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## Issues and analysis

### Issue 1: Whether the Appellant (UPCL) was entitled to the payment of its pre-CIRP dues from the Respondent …

**Ratio:** The resolution plan, once approved, is binding on all stakeholders, including the

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**Reasoning:** The Appellant admittedly did not file their claims during CIRP, but the resolution plan

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**Interpretation:** The resolution plan is sacrosanct and cannot be superseded simply because

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**Application:** The Appellant is entitled to the payment of its pre-CIRP dues from the

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** Uttarakhand Power…
- **Respondents:** M/s. Shirdi…
- **Advocates:** Yakesh…; Sonam A…; +3 more

## Timeline

- **2017-05-18 — CIRP Commen…**: M/s Shirdi Industries Ltd. was admitted into Corporate Insolvency Resolution Process…
- **2017-05-19 — Payment by Re…**: Respondent paid dues…

## Legal provisions

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

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