# 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-03126. The case involves an application filed by Positron Biogenics Private Limited, the successful…

- **Court:** NCLT
- **Order date:** 31 May 2023
- **Citation:** TCN-2023-NCLT-03126
- **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-2017-9106d31e

## Summary

### Background

The case involves an application filed by Positron Biogenics Private Limited, the successful auction purchaser of property belonging to M/s LML Limited, a corporate debtor undergoing liquidation. Positron Biogenics sought an order directing Kanpur Electricity Supply Company Limited (KESCO) to provide a new electricity connection to the purchased property. KESCO refused, demanding payment of outstanding dues of Rs. 13,12,01,634/- pertaining to the pre-CIRP period of LML Limited. The applicant argued that as a bonafide auction purchaser, 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

M/s LML Limited was undergoing liquidation, and Mr. Arun Gupta was appointed as the liquidator. Positron Biogenics Private Limited emerged as the successful auction purchaser of the corporate debtor's property, specifically Parcel A B and C Site-III Panki Industrial Area Kanpur, U.P., for Rs. 26.73 crore. The liquidator issued a sale certificate on 28.12.2022 and handed over possession on 30.12.2022. Positron Biogenics applied for a new electricity connection, but Kanpur Electricity Supply Company Limited (KESCO) demanded payment of Rs. 13,12,01,634/- in outstanding dues from the pre-CIRP period of LML Limited. KESCO claimed that the directors of LML Limited had accepted the due amounting to Rs. 13.08 crore in July 2007. KESCO had submitted its claim to the liquidator,

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## Issues and analysis

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

**Ratio:** Section 238 of the Insolvency and Bankruptcy Code (IBC), 2016, has an overriding effect

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**Reasoning:** The NCLT reasoned that the IBC, being a subsequent enactment, overrides the Electricity

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**Interpretation:** The interpretation of Section 238 of the IBC is crucial, as it determines the

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**Application:** The NCLT applied the ratio and reasoning to the specific facts of the case. It

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## Parties

- **Judges:** Praveen…; Ashish…
- **Appellants:** M/s Positron…
- **Respondents:** M/s. L.M.L.…; Kanpur Electricity…

## Timeline

- **2018-03-23 — Liquidation…**: Tribunal passed an order for…
- **2018-04-16 — Public Annou…**: Liquidator issued a public announcement 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)

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