Supreme Court Allows Appeal of Paschimanchal Vidyut Vitran Nigam Ltd. in Insolvency Case — Holds That Statutory Charge Under Electricity Supply Agreement Survives Liquidation and Must Be Respected Under IBC. The Court ruled that a charge created under Section 53 of the Electricity Act, 2003 read with contractual terms is not extinguished by the moratorium under Section 14 of the Insolvency and Bankruptcy Code, 2016, and the liquidator must treat the appellant as a secured creditor....
The appellant, Paschimanchal Vidyut Vitran Nigam Ltd. (PVVNL), a state electricity distribution company, entered into an electricity supply agreement with the corporate debtor, Raman Ispat Pvt. Ltd., ...
