# In the matter of JVL Agro Industries Ltd.  IA (IB)C No. 273 & 274-ALD-2021 in CP (IB)No. 223-ALD-2018

> NCLT judgment dated 2022-06-14. Citation: TCN-2022-NCLT-02239. The case involves applications filed by the liquidator of JVL Agro Industries Limited under…

- **Court:** NCLT
- **Order date:** 14 Jun 2022
- **Citation:** TCN-2022-NCLT-02239
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/jvl-agro-industries-ltd-ia-ibc-no-273-274-ald-2021-in-cp-ibno-223-ald-2018-c46bcf07

## Summary

### Background

The case involves applications filed by the liquidator of JVL Agro Industries Limited under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, seeking directions to Jaipur Vidyut Vitran Nigam Limited and related parties to determine and refund excess charges levied on the corporate debtor's electricity bills. The corporate debtor had a mustard oil plant in Alwar, Rajasthan. The electricity connection was disconnected following a notice directing closure of the plant. Subsequently, the applicant requested reconnection of three-phase electricity and refund of fixed charges wrongly levied during the disconnection period. Despite the disconnection of three-phase electricity, the corporate debtor was billed for it.

## Facts

JVL Agro Industries Ltd., the corporate debtor, owned a mustard oil plant in Alwar, Rajasthan. On July 11, 2019, respondent no.6 issued a notice directing the plant's closure. Subsequently, on August 9, 2019, respondent no.1 disconnected the electricity supply on the instruction of respondents no.5 and 6, without prior intimation to the applicant and ignoring the ongoing CIRP and moratorium. The applicant requested the restoration of electricity and water supply, essential for the CIRP. Respondent no.6 advised the corporate debtor to pay ₹2,000 for reconnection of single-phase electricity, which was restored on August 20, 2019. Despite this, respondent no.1 continued to bill the corporate debtor at 75% of the contract demand fixed charge for three-phase electricity.

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## Issues and analysis

### Issue 1: Whether the respondents wrongly billed the corporate debtor for three-phase electricity despite the …

**Ratio:** The principle is that a consumer should only be billed for the actual electricity

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**Reasoning:** The court noted that only a single-phase connection was used, and the records showed that

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**Interpretation:** This issue involves the interpretation of fair billing practices and the

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**Application:** The court applied this principle to the facts by noting the discrepancy between

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## Parties

- **Judges:** Rajasekha…; Balraj…
- **Appellants:** Supriyo Kumar…
- **Respondents:** JVL Agro Industrie…; Jaipur Vidyut…

## Timeline

- **2018-07-25 — CIRP Init…**: CIRP was initiated for…
- **2020-08-19 — Liquidation Pr…**: Liquidation proceedings were initiated, and the…

## 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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