Electricity Dues for Periods Prior to Takeover cannot be Recovered from Present Owner under IBC: Meghalaya HC

The Meghalaya High Court ruled that a company acquired through the Insolvency and Bankruptcy Code (IBC) process isn't liable for electricity dues incurred before the takeover. Reliance Infratel, admitted to insolvency in 2019, was taken over by Reliance Projects and Property Management Solutions Ltd. \r

The Meghalaya Power Distribution Corporation Ltd. sought to recover pre-takeover electricity dues, but the court upheld the clean slate principle established by the Supreme Court. The petitioner argued that the respondents should have approached the NCLT for dues recovery. \r

The bench noted that failure to submit claims during insolvency binds the respondent to the resolution plan, extinguishing previous claims. It emphasized that IBC provisions take precedence over other statutory obligations.