The case involves an application by Adhunik Metaliks Limited, an industrial concern with a steel manufacturing plant in Odisha, against Western Electricity Supply Company of Odisha Limited (WESCO). WESCO disconnected Adhunik Metaliks' electricity supply during the Corporate Insolvency Resolution Process (CIRP), despite a moratorium being in place. The NCLT had previously directed WESCO to restore the connection on 21.06.2018, but WESCO failed to do so and demanded a new connection application. Adhunik Metaliks filed the application for urgent hearing because the corporate debtor could not resume its operation for want of electricity.
Adhunik Metaliks Limited, a steel manufacturing plant in Odisha, was undergoing CIRP. Western Electricity Supply Company of Odisha Limited (WESCO) disconnected Adhunik Metaliks' electricity supply during the CIRP, despite a moratorium being in place. The NCLT had previously ordered WESCO to restore the connection on 21.06.2018, but WESCO did not comply and demanded a new connection. Adhunik Metaliks filed an application for reinstatement of electricity supply, arguing that the approved resolution plan extinguished pre-CIRP and post-CIRP dues. WESCO argued that the dues were not paid and termination of the agreement was legal. The resolution plan included clauses extinguishing debts prior to the effective date and waiving certain CIRP costs, including electricity dues.
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NCLT directed…
Hon'ble Tri…
The case involves an application by Adhunik Metaliks Limited, an industrial concern with a steel manufacturing plant in Odisha, against Western Electricity Supply Company of Odisha Limited (WESCO). WESCO disconnected Adhunik Metaliks' electricity supply during the Corporate Insolvency Resolution Process (CIRP), despite a moratorium being in place. The NCLT had previously directed WESCO to restore the connection on 21.06.2018, but WESCO failed to do so and demanded a new connection application. Adhunik Metaliks filed the application for urgent hearing because the corporate debtor could not resume its operation for want of electricity.
Adhunik Metaliks Limited, a steel manufacturing plant in Odisha, was undergoing CIRP. Western Electricity Supply Company of Odisha Limited (WESCO) disconnected Adhunik Metaliks' electricity supply during the CIRP, despite a moratorium being in place. The NCLT had previously ordered WESCO to restore the connection on 21.06.2018, but WESCO did not comply and demanded a new connection. Adhunik Metaliks filed an application for reinstatement of electricity supply, arguing that the approved resolution plan extinguished pre-CIRP and post-CIRP dues. WESCO argued that the dues were not paid and termination of the agreement was legal. The resolution plan included clauses extinguishing debts prior to the effective date and waiving certain CIRP costs, including electricity dues.
…NCLT directed…
Hon'ble Tri…