Electricity Connection cannot be Refused only on account of Past Dues: NCLT

The NCLT has ruled that an electricity connection "cannot be refused only on account of past dues." The tribunal's decision clarifies that a government authority cannot deny an essential service like electricity simply because there are historical dues for which a claim has already been submitted to and admitted by a liquidator. The NCLT stated that such dues are to be settled in accordance with the "waterfall mechanism" under Section 53 of the IBC. This ruling prevents the abuse of power by statutory authorities and ensures that the liquidation process proceeds smoothly, protecting the interests of new entities taking over an insolvent company.