The benefit of electricity supply which is enjoyed by any Corporate Debtor given by Govt. or Authority should be continued subject to the condition that there is no default of payment of current dues – Noida Power Company Ltd. Vs. Mr. Gaurav Katiyar – NCLAT New Delhi
Hon’ble NCLAT held that:
(i) The benefit of electricity supply which is enjoyed by any Corporate Debtor given by government or authority should be continued subject to the condition that there is no default of payment of current dues.
(ii) The protection granted by Section 14(1) is clearly subject to no default in the payment of current dues as clearly stipulated in the explanatory clause. Further, Section 14(2A) only prohibits interruption, termination or suspension of any such supply of goods or services to the Corporate Debtor which the RP considers critical to protect and preserve the value of the Corporate Debtor and manage the operations of the Corporate Debtor as a going concern but with an exception carved out which provides that in case the Corporate Debtor has not paid dues arising from such supply during the period of moratorium.
