# In the matter of Rubber Wood India Private Limited

> NCLT judgment dated 2024-04-09. Citation: TCN-2024-NCLT-01769. The case involves an application filed by the auction purchaser of the assets of Rubberwood…

- **Court:** NCLT
- **Order date:** 9 Apr 2024
- **Citation:** TCN-2024-NCLT-01769
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/rubber-wood-india-private-limited-e6112670

## Summary

### Background

The case involves an application filed by the auction purchaser of the assets of Rubberwood India Private Limited, the Corporate Debtor, seeking a direction to Kerala State Electricity Board Limited (KSEBL) to grant a fresh electricity connection without charging outstanding dues of the Corporate Debtor. The Corporate Debtor was admitted into Corporate Insolvency Resolution Process (CIRP) on 17.05.2022, and subsequently, an order for liquidation was passed on 15.12.2022. The liquidator conducted an e-auction on 12.10.2023, where the applicant emerged as the successful bidder. KSEBL had disconnected the electricity supply to the Corporate Debtor before liquidation due to arrears and refused to grant a fresh connection to the applicant, citing outstanding dues.

## Facts

M/s. Rubberwood India Private Limited was admitted into CIRP on 17.05.2022. Due to the absence of a resolution plan, liquidation was ordered on 15.12.2022, and a liquidator was appointed. The liquidator conducted an e-auction on 12.10.2023, where M/s. Kuttanad Coir and Rubber Products, represented by Mr. Ajay Zacharia Mathew, emerged as the successful bidder for Rs. 3,70,00,000/-. A Letter of Intent was issued on 14.10.2022, and an agreement was executed with the Rubber Board on 15.12.2023, assigning the lease to the applicant. Prior to liquidation, Kerala State Electricity Board Limited (KSEBL) disconnected the electricity supply due to arrears and filed a claim with the liquidator for Rs. 27,05,831/-. The applicant applied for a fresh electricity connection on

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## Issues and analysis

### Issue 1: Whether the Applicant is liable for paying the arrear on the electricity charges of the Corporate …

**Ratio:** Section 53 of the Insolvency and Bankruptcy Code (IBC), 2016, governs the distribution of

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**Reasoning:** The NCLT reasoned that Section 53 of the IBC provides a clear order of priority for the

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**Interpretation:** Section 53 of the IBC establishes a clear differentiation in the treatment of

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**Application:** The NCLT applied the ratio to the facts of the case, concluding that KSEBL's

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## Parties

- **Judges:** Shyam Babu…; T Krishna…
- **Appellants:** M/s. Kuttanad…
- **Respondents:** M/s. Rubberwood…; Kerala State…

## Timeline

- **2022-05-17 — Admission in…**: Corporate Debtor admitted into Corporate…
- **2022-12-15 — Liquidation…**: Order for Liquidation of 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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