Resolution plan waivers extend only to expressly approved reliefs; future electricity security deposits and CIRP-period dues follow the governing law.

A resolution plan binds only to reliefs and waivers expressly approved in it; a waiver of power dues up to approval did not extend to security deposit for future enhanced contract demand or 132 KV supply, so those later requests remained subject to the applicable electricity regulations. The Tribunal also stated that unpaid electricity dues arising during the CIRP period form part of CIRP costs, while dues arising after the moratorium are payable by the corporate debtor under the governing law. In the absence of any specific order granting waiver of the future security deposit and related charges, the impugned approval was unsustainable to that extent and was set aside.

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Issues: Whether the approved resolution plan contained a binding waiver of security deposit for enhanced contract demand and 132 KV supply, and whether electricity dues arising during the CIRP period were to be treated as CIRP costs.

Analysis: The resolution plan approved under Section 31(1) of the Insolvency and Bankruptcy Code, 2016 waived power dues existing up to the date of approval, but it did not contain any specific and express approval for waiver of security deposit for future enhancement of contract demand or for supply through a higher voltage line. The requests made after approval of the plan for increase in contract demand and for 132 KV connection therefore remained unapproved proposals and could not override the applicable electricity regulations. The Tribunal also held that dues for electricity supplied during the CIRP period, if unpaid, form part of CIRP costs, while dues arising after the moratorium are payable by the corporate debtor in accordance with the applicable law and regulations.

Conclusion: The waiver of security deposit for future enhanced supply was not available under the approved resolution plan, and the appellant was entitled to demand payment in accordance with the extant regulations. CIRP-period electricity dues were required to be paid as CIRP costs.

Issue (ii): Whether the impugned order approving the waiver request could stand in light of the absence of any specific order granting such relief.

Analysis: The Tribunal found that the adjudicating authority had not passed any specific order approving waiver of security deposit or other charges for enhanced contract demand and 132 KV supply. In the absence of an express approval, those reliefs could not be inferred from the resolution plan. The tribunal therefore held that the impugned order was unsustainable to that extent and that the parties must act according to the relevant WBERC regulations for future charges and deposits.

Conclusion: The impugned order was quashed and set aside.

Final Conclusion: The appeal succeeded, with clarification that only expressly approved plan benefits were enforceable, while future electricity-related security deposits and charges had to be governed by the applicable regulatory framework.

Ratio Decidendi: A resolution plan binds the parties only to the reliefs and waivers expressly approved in it, and future statutory or regulatory charges for enhanced services cannot be inferred or waived without a specific order; CIRP-period service dues remain payable as CIRP costs.

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