# In the matter of Impex Metal & Ferro Alloys Limited

> NCLT judgment dated 2024-04-16. Citation: TCN-2024-NCLT-01720. This case involves an application by Maithan Alloys Limited, the successful auction purchaser…

- **Court:** NCLT
- **Order date:** 16 Apr 2024
- **Citation:** TCN-2024-NCLT-01720
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/impex-metal-ferro-alloys-limited-38759264

## Summary

### Background

This case involves an application by Maithan Alloys Limited, the successful auction purchaser of Impex Metal and Ferro Alloys Limited (the Corporate Debtor), seeking reliefs related to the restoration of electricity connection and refund of amounts paid to Eastern Power Distribution Company of Andhra Pradesh Limited (the Respondent). The applicant contends that they paid amounts towards security deposit and adequacy of consumption deposits under protest to keep the Corporate Debtor as a going concern. They seek a refund of these amounts with interest, citing a previous order dated 05.10.2021. The respondent refused to reconnect the electricity supply without clearing previous dues, stating that the applicant/corporate debtor is liable to pay past dues. The applicant

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## Facts

Maithan Alloys Limited acquired Impex Metal and Ferro Alloys Limited (Corporate Debtor) through an auction. The applicant sought restoration of the Corporate Debtor's electricity connection from Eastern Power Distribution Company of Andhra Pradesh Limited (Respondent). The applicant paid Rs. 11,35,27,000/- and Rs. 9,37,47,635/- under protest for security deposit and adequacy of consumption deposits, respectively, to maintain the Corporate Debtor as a going concern. The Respondent refused to restore the electricity connection without clearing previous dues. The applicant deposited Rs. 24.50 crore towards electricity connection, but the connection was not energized. The Respondent refunded Rs. 16,83,81,500/- but retained Rs. 3,16,08,440/- for true-up charges imposed by

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## Issues and analysis

### Issue 1: Whether the Respondent No.1 is justified in refusing to restore the electricity connection to the …

**Ratio:** Section 238 of the Insolvency and Bankruptcy Code (I&B Code) has an overriding effect

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**Reasoning:** The Adjudicating Authority considered the submissions of both parties and the relevant

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**Interpretation:** Section 238 of the I&B Code prioritizes the provisions of the Code over

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**Application:** The Adjudicating Authority directed the Respondent No.1 to energize the

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## Parties

- **Judges:** BIDISHA BA…; D. Ar…
- **Appellants:** Maithan Alloys…
- **Respondents:** Impex Metal &…; EASTERN POWER…

## Timeline

- **2019-04-24 — Termination of HT…**: The High Tension (HT) Agreement with…
- **2021-05-24 — Settlement Ag…**: Joint Settlement Agreement executed between the Applicant, State Bank of India, the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 53 — Distribution of assets](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-53)

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