The case involves an application filed by the liquidator of Chaudhary Ingots Pvt. Ltd. seeking a direction against Paschimanchal Vidyut Vitran Nigam Ltd. (PVVNL) to deposit a security deposit amount of INR 1,04,00,000 along with applicable interest into the liquidation account. PVVNL had adjusted/set-off/retained INR 1,15,33,600 towards electricity dues of the Corporate Debtor, citing provisions of the Electricity Supply Code, 2005. The liquidator contends that this adjustment is contrary to Section 14 and Section 33(5) of the Insolvency and Bankruptcy Code (IBC), 2016, and that the security deposit is an asset of the Corporate Debtor that should form part of the liquidation estate.
1. A liquidation order was passed against M/s. Chaudhary Ingots Pvt. Ltd.
2. Sandeep Goel was appointed as the liquidator for Chaudhary Ingots Pvt. Ltd.
3. PVVNL claimed INR 4,04,19,294 from Chaudhary Ingots Pvt. Ltd.
4. PVVNL adjusted INR 1,15,33,600 from the security deposit and interest towards electricity dues.
5. The liquidator requested PVVNL to transfer the security deposit to the liquidation account.
6. PVVNL declined, citing the Electricity Supply Code, 2005.
7. The liquidator conducted an E-auction sale on 2022-04-28.
8. The liquidator contends that PVVNL's actions violate Section 14 and Section 33(5) of the IBC.
9. PVVNL argues that the Electricity Supply Code allows for the adjustment of security deposits.
10. The security deposit was INR 1,04,00,000.
11. Interest on
Sign in to view the parties.
Case filed un…
Insolvency…
The case involves an application filed by the liquidator of Chaudhary Ingots Pvt. Ltd. seeking a direction against Paschimanchal Vidyut Vitran Nigam Ltd. (PVVNL) to deposit a security deposit amount of INR 1,04,00,000 along with applicable interest into the liquidation account. PVVNL had adjusted/set-off/retained INR 1,15,33,600 towards electricity dues of the Corporate Debtor, citing provisions of the Electricity Supply Code, 2005. The liquidator contends that this adjustment is contrary to Section 14 and Section 33(5) of the Insolvency and Bankruptcy Code (IBC), 2016, and that the security deposit is an asset of the Corporate Debtor that should form part of the liquidation estate.
1. A liquidation order was passed against M/s. Chaudhary Ingots Pvt. Ltd.
2. Sandeep Goel was appointed as the liquidator for Chaudhary Ingots Pvt. Ltd.
3. PVVNL claimed INR 4,04,19,294 from Chaudhary Ingots Pvt. Ltd.
4. PVVNL adjusted INR 1,15,33,600 from the security deposit and interest towards electricity dues.
5. The liquidator requested PVVNL to transfer the security deposit to the liquidation account.
6. PVVNL declined, citing the Electricity Supply Code, 2005.
7. The liquidator conducted an E-auction sale on 2022-04-28.
8. The liquidator contends that PVVNL's actions violate Section 14 and Section 33(5) of the IBC.
9. PVVNL argues that the Electricity Supply Code allows for the adjustment of security deposits.
10. The security deposit was INR 1,04,00,000.
11. Interest on
Case filed un…
Insolvency…