Whether the person who has purchased Corporate Debtor as a going concern under Liquidation Process is liable to pay the electricity charges due prior to its purchase – R.E.C. Ispat Pvt. Ltd. Vs. Eastern Power Distribution Company of Andhra Pradesh Ltd. – NCLT Hyderabad Bench
Hon’ble NCLT Hyderabad Bench observes:
(i) The argument put forth by the learned counsel for the respondent that the Corporate Debtor, subsequent to the sale as a going concern, is obligated to settle the outstanding electricity dues, which were liabilities of the former Corporate Debtor, and that the electricity connection cannot be reinstated without the settlement of said dues is not in consonance with the statutory framework of the Insolvency and Bankruptcy Code (IBC).
(ii) Hence, we hereby direct the respondent to issue a new power connection or restore the previous power connection without requiring settlement of any outstanding past dues and it is clarified that the successful bidder shall not be exempted from paying any other charges, apart from the aforementioned past dues, for the acquisition of the new connection.
