Successful Auction Purchaser Cannot Be Compelled To Pay Pre-CIRP Electricity Dues Before Restoring Electricity Connection: NCLAT

The NCLAT ruled that a successful auction purchaser of an insolvent company cannot be compelled to pay the pre-CIRP (Corporate Insolvency Resolution Process) electricity dues. The case concerned a buyer who acquired a company during the insolvency process but was asked to settle unpaid electricity bills from before the CIRP started. The Tribunal decided that the buyer is not liable for these dues, clarifying the scope of financial obligations during the insolvency process. This ruling is important for ensuring that auction purchasers are not burdened with liabilities predating the CIRP.