PASCHIMANCHAL VIDYUT VITRAN NIGAM LTD Vs. RAMAN ISPAT PRIVATE LIMITED

JUDGEMENT

(1.) The appellant Paschimanchal Vidyut Vitran Nigam Limited (hereinafter, "PVVNL") is aggrieved by an order of the National Company Law Appellate Tribunal (hereinafter, "NCLAT")[1] which rejected its appeal against an order of the National Company Law Tribunal, Allahabad (hereinafter, "NCLT"/ "Adjudicating Authority"),[2] which allowed an application directing the District Magistrate and Tehsildar, Muzaffarnagar to immediately release property (which was previously attached at the request of the appellant) in favour of the liquidator of the respondent Raman Ispat Pvt. Ltd. (hereinafter, "corporate debtor") for enabling its sale, and after realisation of its value, for distributing the proceeds in accordance with the provisions of the Insolvency and Bankruptcy Code, 2016 (hereinafter, "IBC" / "Code").

(2.) The parties had entered into an agreement on 11/2/2010 for supply of electricity. Clause 5 of the agreement provided that:

(3.) PVVNL raised bills for supply of electricity to the corporate debtor from time to time. Since the dues remained unpaid, PVVNL attached the corporate debtors properties by Order No. 1048, dtd. 12/1/2016. The Tehsildar, Muzaffarnagar by Order No. 1423F dtd. 23/1/2016, restrained transfer of property by sale, donation or any other mode, and also created a charge on the properties. The corporate debtor initially underwent resolution process under the IBC, however that process was not successful. It therefore became subject to liquidation.