Appellant, as purchaser of asset, not liable for past ...

CIRP: Purchaser not liable for Corporate Debtor's past electricity dues. New connection obtainable on statutory dues payment, excluding past dues. Past dues can't burden liquidation sale.

Case Laws Insolvency and Bankruptcy

July 8, 2024

Appellant, as purchaser of asset, not liable for past electricity dues of Corporate Debtor (CD). New electricity connection obtainable on payment of statutory dues, excluding past dues. NCLAT reiterated past dues cannot be claimed for new connection grant. Sale certificate issued on 'as is where is' basis. Question framed: Can CD's electricity dues be insisted upon Successful Resolution Applicant/Auction Purchaser? Telangana case distinguished; view taken that when CD sold in liquidation, it cannot be burdened with past unpaid liabilities. Adjudicating Authority's dismissal of appellant's application erroneous. Appeal allowed, impugned order set aside without costs.

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Appellant, as purchaser of asset, not liable for past ...

CIRP: Purchaser not liable for Corporate Debtor's past electricity dues. New connection obtainable on statutory dues payment, excluding past dues. Past dues can't burden liquidation sale.

Case Laws Insolvency and Bankruptcy

July 8, 2024

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