# In the matter of Adhunik Metaliks Ltd I . A.No.…. . -CTB-2020 TP No.44- CTB-2019 CP (IB) No.373-KB-2017

> NCLT judgment dated 2020-05-13. Citation: TCN-2020-NCLT-01362. The case involves an application by Adhunik Metaliks Limited, an industrial concern with a…

- **Court:** NCLT
- **Order date:** 13 May 2020
- **Citation:** TCN-2020-NCLT-01362
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/adhunik-metaliks-ltd-i-ano-ctb-2020-tp-no44-ctb-2019-cp-ib-no373-kb-2017-b86f9bdf

## Summary

### Background

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.

## Facts

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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## Issues and analysis

### Issue 1: Whether the respondent, WESCO, is legally entitled to claim Pre-CIRP dues and Post-CIRP dues as …

**Ratio:** The principle of extinguishment of dues under an approved resolution plan, as per the

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**Reasoning:** The court reasoned that the resolution plan, approved by the AA and re-approved by the

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**Interpretation:** The interpretation of the resolution plan's clauses regarding extinguishment of

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**Application:** The ratio and reasoning were applied to the specific facts of the case, where

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## Parties

- **Judges:** Jinan…
- **Respondents:** ADHUNIK METALIKS…; WESTERN ELECTRICIT…
- **Advocates:** Ratnanko B…; Saswat Ac…; +1 more

## Timeline

- **2018-06-21 — NCLT Ord…**: NCLT directed WESCO to…
- **2018-07-17 — Resolution Plan…**: Hon'ble Tribunal…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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