Electricity Being Essential Service Needs To Be Continued During CIRP Period, NCLAT Delhi Upholds RP's Decision To Increase Maintenance

The NCLAT Delhi ruled that essential services, like electricity, are critical during Corporate Insolvency Resolution Process (CIRP). The ruling addressed disputes over whether a Resolution Professional (RP) could increase maintenance charges for essential services. The tribunal emphasized that the RP must ensure essential services are maintained without undue financial burden on the corporate debtor. The decision clarifies that essential services should not be disrupted or overly costly during CIRP, protecting both the debtor and creditors' interests. The RP's ability to manage and negotiate service charges is crucial for maintaining operational stability throughout the insolvency process.