Electricity Can't Be Disconnected At Corporate Debtor's Plant When Assets Are Put On Auction To Maximise Value: NCLT Kolkata

The National Company Law Tribunal (NCLT), Kolkata Bench of Rekha Kantilal Shah (Technical Member) and Labh Singh (Judicial Member) has held that electricity cannot be disconnected at the Corporate Debtor's plant while machinery and other assets are being auctioned. Electricity is essential to maximise asset value and ensure safety of the assets. The present application has been filed under section 60(5) of the Insolvency and Bankruptcy Code, 2016 (IBC) against the West Bengal State Electricity Distribution Limited seeking restoration of the electricity at the Corporate Debtor's plant. The Applicant submitted that as per the provisions of the Code, the suppliers of essential goods and services are required to continue such supplies to the Corporate Debtor, unless otherwise directed by the Hon'ble NCLT. The Tribunal noted that the Respondent did not file its claims before the commencement of the Liquidation Process. However, the Applicant has undertaken to consider the claims under section 53 of the IBC once they are filed and admitted. Dues for CIRP period will be considered as CIRP coasts and will be paid in priority. It further observed that given the assets of the Corporate Debtor are being auctioned, electricity is essential for due diligence visits, assets upkeep and safety. It is also crucial for maximising asset value. In light of the above discussion, the Tribunal directed the Respondent to restore electricity connection at the corporate debtor's plant. The liquidator was also directed to make timely payment after the electricity is restored and consider the claims of the Respondent as per the provisions of the IBC once they are filed. Accordingly, the present application was disposed of. Case Title: Mr. Pratim Bayal -Versus- West Bengal State Electricity Distribution Company Limited Case Number: I.A (IBC) No 617/KB/2025 In C.P (IBC) No 522/KB/2018 Order Date: 08/07/2025 Click Here To Download Order/Judgement

Electricity Can't Be Disconnected At Corporate Debtor's Plant When Assets Are Put On Auction To Maximise Value: NCLT Kolkata

Mohd Malik Chauhan

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