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2026 Supreme(Online)(NCLT) 2461

NATIONAL COMPANY LAW TRIBUNAL
Praveen Gupta, Judicial Member, Ashish Verma, Technical Member
Deepak Kumar Garg – Appellant
Versus
Pashimanchal Vidyut Vitran Nigam Limited – Respondent
IA No.631 of 2025 IN CP (IB) No.152 of 2024



Advocates:
For the Appellants/Petitioners: Krishna Dev Vyas
For the Respondents: None

During the CIRP moratorium, a Corporate Debtor cannot make payments for pre-CIRP dues. Any such voluntary payment made after the commencement of insolvency must be adjusted towards ongoing CIRP service dues, and pre-CIRP claims must be submitted through the formal insolvency resolution process.

Headnote:(A) Insolvency and Bankruptcy Code, 2016 - Sections 14, 53, 60(5) - Moratorium - Pre-CIRP dues - Appropriation of payments - Corporate debtor made voluntary payment of pre-CIRP electricity dues after commencement of CIRP - Held, such payments violate Section 14 moratorium and are impermissible - Amounts paid after CIRP commencement must be adjusted against current CIRP dues, and pre-CIRP claims must be filed through the prescribed mechanism to be settled via the resolution plan - Respondent directed to segregate dues and stop disconnection. (Paras 15, 17, 18, 19, 20)

Facts of the case:
The Corporate Debtor was admitted to CIRP on 18.03.2025. The electricity supplier raised a bill for March 2025, which included pre-CIRP arrears from 01.03.2025 to 17.03.2025. The erstwhile IRP made full payment of the combined bill in April 2025. The current IRP filed this application seeking segregation of the consumption units, refund of pre-CIRP payments, and a stay on disconnection threats.

Findings of Court:
The Tribunal found that payments made during the moratorium period towards pre-CIRP dues are prohibited as they treat one creditor preferentially. It directed the respondent to re-calculate the consumption, file a formal claim before the IRP, and adjust the excess payments against future CIRP period electricity bills.

Issues: Whether electricity dues pertaining to the pre-CIRP period can be recovered during the CIRP period and whether payments already made for pre-CIRP dues during the moratorium can be retained by the utility provider.

Ratio Decidendi: Any payment made from the assets of a corporate debtor after the insolvency commencement date cannot be appropriated towards pre-CIRP liabilities, as this would violate the moratorium under Section 14 and the waterfall mechanism under Section 53 of the Code. Such payments must be adjusted against ongoing CIRP service dues.

Result: Application allowed.

Table of Content
1. procedural context for pre-cirp electricity payment dispute. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7)
2. parties' contentions regarding moratorium and claim settlements. (Para 8 , 9 , 10)
3. prohibition of pre-cirp payments during currency of moratorium. (Para 11 , 12 , 13 , 14 , 15 , 16 , 17 , 18)
4. directions for adjusting payments and preserving essential services. (Para 19 , 20 , 21)

Appearances:

Sh. Krishna Dev Vyas, Adv. : For the Applicant/IRP

None : For the non-applicant/Respondent/PVVNL

ORDER

1. This present application has been filed on 10.09.2025 under section 60(5) of the Insolvency and Bankruptcy Code, 2016 (“IBC/Code”), read with Rule 11 of the NCLT Rules, 2016 (“NCLT Rules”), by Interim Resolution Professional (“IRP/Applicant”) of M.S.A STEEL AND ALLOYS Private Limited (“Corporate Debtor”), seeking inter alia the following reliefs:

“A. Direct the Respondent, to provide complete details of the electricity units consumed during the pre-CIRP period and during the CIRP period; and/or

(b) Direct the Respondent to duly segregate the electricity charges pertaining to the pre-CIRP period and the during CIRP period, including fixed charges, demand charges, penalties (if any), and other components of the bill; and/or

(c) Direct the Respondent to refund the payment made towards electricity dues pertaining to the pre-CIRP period, which was paid during the CIRP period; and/or

(d)Restrain the Respondent from disconnecting the electricity connection and from taking any coercive action against the Corporate Debtor during the CIRP Period; and/or

(e) Pass such other order/ directions as this Hon’ble Adjudicating Authority may deem fit and proper in the facts and circumstances of the case.”

2. The brief background of the case is that Corporate Insolvency Resolution Process (CIRP) has been initiated against the Corporate Debtor vide order dated 18.03.2025, passed by this Tribunal, and Mr. Ankit Agarwal has been appointed as the Interim Resolution Professional (IRP). Subsequently, as stated in the application that upon commencement of the CIRP, the IRP issued a public announcement on 21.03.2025 in two newspapers, namely- Financial Express and Jansatta, inviting claims from creditors with the last date of submission being 01.04.2025.

3. As stated in the application, the Respondent No. 1 Pashimanchal Vidyut Vitran Nigam Limited Muzaffarnagar had raised electricity bill for the month of March 2025, amounting to Rs. 88,81,831/- (Rupees Eighty-Eight Lakh Eighty-One Thousand Eight Hundred and Thirty-one) and the same was paid by erstwhile IRP in full on 11.04.2025 and 15.04.2025.

4. The Applicant further avers that as the Corporate Debtor was admitted into the CIRP vide order dated 18.03.2025, passed by this Tribunal, the period from 01.03.2025 to 17.03.2025 falls under the pre-CIRP periods and claim for pre-CIRP dues cannot be unilaterally recovered during CIRP but must be routed through the claim filing mechanism under the Code. Respondent being an operational creditor is required to file claim for pre-CIRP dues before the IRP as per provision of the IBC and CIRP Regulations.

5. That this tribunal vide its order dated 30.07.2025 appointed Mr. Deepak Kumar Garg, Insolvency Professional having IBBI Reg. No. IBBI/IPA-002/IPN00796/2019 -2020/12560 (Applicant herein) as IRP in place of Mr. Ankit Agrawal.

6. Applicant IRP submits that despite repeated communications, both through letter dated 20.08.2025 and subsequent emails dated 20.08.2025 and 03.09.2025, the Respondent has failed to take any cognizance of the Applicant’s requests for providing information relating to segregation of units for Pre-CIRP period and CIRP Period and for refunding the amount paid against the Pre-CIRP dues. The Respondent has neither provided the required information regarding units consumed and segregation of charges, nor refunded the amount pertaining to the pre-CIRP period.

7. Applicant further submits that upon admission of a

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