Case Law Analysis
|Allahabad High Court
Section 31 IBC | Pre-CIRP Electricity Dues Extinguished from Effective Date of Resolution Plan, Not NCLT Approval Date : Allahabad HC
The Allahabad High Court has ruled that under Section 31 of the IBC, statutory electricity dues arising before the Corporate Insolvency Resolution Process are extinguished as of the Effective Date specified in the approved resolution plan - not the date of NCLT approval. This clarifies that resolution applicants inherit liability only prospectively, reinforcing the clean slate principle and shielding them from legacy dues improperly revived post-resolution.