# In the matter of LML Limited IA No.99-2023 IN CP (IB) No.55-ALD-2017

> NCLT judgment dated 2023-05-31. Citation: TCN-2023-NCLT-03115. The case involves an application filed by Positron Biogenics Private Limited, the successful…

- **Court:** NCLT
- **Order date:** 31 May 2023
- **Citation:** TCN-2023-NCLT-03115
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/lml-limited-ia-no99-2023-in-cp-ib-no55-ald-2017-302c47c0

## Summary

### Background

The case involves an application filed by Positron Biogenics Private Limited, the successful auction purchaser of property belonging to LML Limited, a corporate debtor undergoing liquidation. Positron Biogenics sought an order directing Kanpur Electricity Supply Company Limited (KESCO) to grant a new electricity connection to the purchased property. KESCO demanded payment of outstanding dues of Rs. 13,12,01,634, pertaining to the pre-CIRP period of LML Limited, before providing the connection. The applicant argued that as a bonafide purchaser in the liquidation process, it is not liable for the corporate debtor's pre-CIRP dues, citing Section 53 and Section 32A of the Insolvency and Bankruptcy Code (IBC), 2016.

## Facts

1. M/s LML Limited underwent Corporate Insolvency Resolution Process (CIRP) which failed, leading to a liquidation order dated 23.03.2018.
2. Mr. Arun Gupta was appointed as the Liquidator for LML Limited.
3. The Liquidator conducted an e-auction sale of the assets of LML Limited.
4. M/s Positron Biogenics Private Limited emerged as the successful auction purchaser of property Parcel A B and C Site-III Panki Industrial Area Kanpur, U.P. for Rs.26.73 cr. The e-auction was conducted on an "as is where is" basis.
5. The Liquidator issued a sale certificate dated 28.12.2022 and handed over possession of the property to Positron Biogenics on 30.12.2022.
6. Positron Biogenics applied for a new electricity connection to the purchased property.
7. Kanpur Electricity Supply

…

## Issues and analysis

### Issue 1: Whether the Applicant is liable to pay the outstanding dues of electricity supply pertaining to …

**Ratio:** The Insolvency and Bankruptcy Code (IBC), 2016, specifically Section 238, has an

…

**Reasoning:** The NCLT relied on the NCLAT's decision in Paschimanchal Vidyut Vitran Nigam Ltd. Vs.

…

**Interpretation:** Section 238 of the IBC is interpreted to mean that the IBC's provisions

…

**Application:** The NCLT applied the ratio to the facts of the case, holding that KESCO's claim

…

## Parties

- **Judges:** Praveen…; Ashish…
- **Appellants:** M/s Positron…
- **Respondents:** M/s. L.M.L.…; Kanpur Electricity…
- **Advocates:** Babita…; Sh. Vibh…; +1 more

## Timeline

- **2018-03-23 — Liquidation…**: Tribunal passed an order for…
- **2022-09-07 — E-Auction Sal…**: Liquidator published e-auction sale notice for…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/lml-limited-ia-no99-2023-in-cp-ib-no55-ald-2017-302c47c0