# In the matter of Tata Power Western Odisha Distribution Limited (TPWODL) & Anr. vs. Jagannath Sponge Private Limited

> SC judgment dated 2023-09-11. Citation: TCN-2023-SC-00042. The case involves an appeal against an order regarding the payment of arrears for an electricity…

- **Court:** SC
- **Order date:** 11 Sept 2023
- **Citation:** TCN-2023-SC-00042
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/tata-power-western-odisha-distribution-limited-tpwodl-anr-vs-jagannath-sponge-pr-ef8b6a19

## Summary

### Background

The case involves an appeal against an order regarding the payment of arrears for an electricity connection to a corporate debtor undergoing insolvency resolution. The appellant, Tata Power Western Odisha Distribution Limited, sought payment of arrears as a condition for granting an electricity connection. The Supreme Court considered previous judgments, including 'Paschimanchal Vidyut Vitran Nigam Ltd. vs. Raman Ispat Private Limited and Others' and 'Southern Power Distribution Company of Andhra Pradesh Limited vs. Gavi Siddeswara Steels (India) Pvt. Ltd. and Another,' as well as 'Embassy Property Developments Private Limited vs. State of Karnataka and Others'.

## Facts

Tata Power Western Odisha Distribution Limited (TPWODL) appealed a decision regarding the payment of arrears for an electricity connection to Jagannath Sponge Private Limited, a corporate debtor. TPWODL sought payment of these arrears as a prerequisite for granting the electricity connection. The case was heard in the context of the corporate debtor's insolvency resolution process. The Supreme Court referenced prior judgments, including 'Paschimanchal Vidyut Vitran Nigam Ltd. vs. Raman Ispat Private Limited and Others', 'Southern Power Distribution Company of Andhra Pradesh Limited vs. Gavi Siddeswara Steels (India) Pvt. Ltd. and Another', and 'Embassy Property Developments Private Limited vs. State of Karnataka and Others'. The core issue was whether TPWODL could

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## Issues and analysis

### Issue 1: Whether Tata Power Western Odisha Distribution Limited can insist on payment of arrears by …

**Ratio:** The 'clean slate principle' dictates that a successful resolution applicant should not be

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**Reasoning:** The court reasoned that allowing the appellant to demand arrears outside the resolution

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**Interpretation:** The court interpreted the IBC to mean that all dues, including those for

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**Application:** In this specific case, the court applied the 'clean slate principle' to prevent

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## Parties

- **Judges:** SANJIV K…; S.V.N. B…
- **Appellants:** TATA POWER…
- **Respondents:** JAGANNATH SPONGE…
- **Advocates:** Shyam D…; Hasan Mu…

## Timeline

- **2023-09-06 — Order Date (Southern Power Distribution Company…**: Order dated 06th September, 2023 in Civil Appeal No.5716-5717/2023 (Southern Power…
- **2023-09-11 — Hearing…**: This appeal was called…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(21) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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