Electricity dues for Periods Prior to Takeover cannot be Recovered from Present Owner under IBC: Meghalaya HC [Read Order]

The court allowed the writ petition, emphasising that a clean slate approach is applied upon takeover, and concluded that the claim was unsustainable
By Ashkar Tovarishch - On June 10, 2024 8:29 pm - 2 mins read
Meghalaya High Court - Insolvency and Bankruptcy Code - Electricity - IBC - Electricity Dues for Periods - taxscan

The Meghalaya High Court ruled that a company acquired through the Insolvency and Bankruptcy Code (IBC) process is not liable for electricity dues incurred before the takeover. Reliance Infratel, the petitioner company that operates over 43,000 mobile towers in India of which 157 are situated in Meghalaya, was admitted to insolvency with effect from 07.05.2019….

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