The National Company Law Tribunal has ruled that electricity is an essential supply under section 14(2) of the Insolvency and Bankruptcy Code,2016, and it has also barred the disconnection of electricity for the non-payment of pre-Corporate Insolvency Resolution Process (CIRP) dues.
The Financial Creditor, Punjab National Bank, had initiated CIRP against Garib Nawaz Hotels, the Corporate Debtor. It was admitted on 9 February 2024, with Jalesh Kumar Grover, the applicant in the instant case, appointed as IRP. In compliance with statutory obligations, the IRP informed various authorities. It included the respondent, the Chandigarh Electricity Department, as well. The IRP requested them not to suspend essential services.
The Chandigarh…