Whether Successful Bidder, who has purchased the property pursuant to Liquidation auction is liable to pay the electricity dues of the property? | Whether NOC regarding charge on assets of Corporate Debtor would result in relinquishment of the secured interest in terms of section 52(1)(a) of the IBC? – Harsh Kumar Vs. The Assistant Engineer, Electrical Sub Division, Himachal Pradesh State Electricity Board Ltd. and Ors. – NCLT Chandigarh Bench
November 7, 2024
Hon’ble NCLT Chandigarh Bench held that:
(i) In the e-auction documents, it was clearly mentioned that the properties i.e. Land and Building, and Plant and Machinery being sold by the Liquidator are on “AS IS WHERE IS BASIS”, “AS IS WHAT IS BASIS”, “WHATEVER THERE IS BASIS” and “NO RECOURSE BASIS”, the Successful Bidder would be liable to pay the arrears of the electricity dues.
(ii) Once the claim of electricity dues has been admitted by the Liquidator, no subsequent impediments can be imposed by the liquidator. However, Electricity Company has given NoC to the Liquidator, this would result in relinquishment of the secured interest of Electricity Company in the liquidation estate in terms of section 52(1)(a) of the IBC.
