188 SEBI & Corporate Laws - Reports [Vol. 154
for making necessary application and, further, if procedures were followed by
liquidator, respondent-power distribution company was to be directed to effect
change from HT to LT category - Held, yes [Paras 10 and 11]
FACTS
n
The
petition
filed
under
section
7
by
the
financial
creditor
against
the
corpo
rate -
debtor
was
admitted
and
CIRP
started.
Thereafter,
order
of
liquidation
of^
corporate
debtor
was
passed.n
The
applicant
stated
that
the
corporate
debtor
was
into
Iron
and
Steel
man
ufacturing -
business
and
for
that
purpose
the
company
was
having
HT
(High
Tension)^
power
service
line
which
was
governed
by
HT
tariff
at
higher
rates
and^
since
the
operations
at
the
factory
of
the
corporate
debtor
was
closed
down,^
there
was
no
necessity
of
HT
power
line.
Further,
the
company
was
receiving^
huge
bills
from
the
Electricity
department
even
without
using
HT
connection.^
It
was
also
stated
that
the
corporate
debtor
received
notice
from
the^
respondent-electricity
department
intimating
disconnection
of
supply
of^
electricity.n
The
applicant
submitted
that
electricity
connection
to
the
corporate
debtor
was^
only
for
lightening
purpose
to
safeguard
the
assets
of
the
corporate
debtor^
for
which
HT
power
service
line
was
not
necessary
and,
thus,
prayed
to^
direct
the
respondent
to
change
the
supply
of
power
from
HT
category
to^
LT
category.HELD
n
This
application
is
filed
by
Liquidator
for
a
direction
to
Eastern
Power
Dis
tribution -
Company
of
A.P.
Ltd.
(APEPDCL)
to
change
the
supply
of
power
to^
corporate
debtor
from
High
Tension
category
to
Low
Tension
category
for^
reasons
stated
in
the
application.
[Para
7 ]n
The
corporate
debtor
is
under
liquidation.
The
corporate
debtor
was
in
the^
business
of
manufacturing
of
Iron
and
Steel.
It
obtained
HT
power
service^
for
running
the
company.
However,
the
operations
at
the
factory
of^
corporate
debtor
are
closed
down.
Therefore,
there
is
no
need
for
high
transmission^
power
line.
[Para
8 ]n
It
is
contended,
HT
tariff
rates
are
higher
than
the
LT
tariff
rates.
Therefore,
direction^
is
sought
to
APEPDCL
to
change
the
supply
of
power
from
HT
service^
to
LT
service.
[Para
9 ]n
The
Liquidator
is
first
directed
to
move
the
APEPDCL
by
making
necessary
application^
for
change
of
supply
of
power
to
corporate
debtor
from
HT
category^
to
LT
category.
The
procedure,
if
any
prescribed
for
change,
be
first^
followed
by
Liquidator.
The
APEPDCL
is
directed
to
respond
to
the
request,^
if
any,
made
by
the
Liquidator
on
behalf
of
the
corporate
debtor
for^
change
of
category
of
supply
of
power,
as
requested.
[Para
10 ]n
In
the
result,
application
is
allowed
directing
the
Liquidator
at
the
first
in
stance -
to
apply
to
APEPDCL
for
change
of
power
supply
to
the
corporate