Resolution plan finality bars pre-CIRP arrears demands for utility reconnection, while other lawful technical requirements may still apply.

An approved resolution plan under the Insolvency and Bankruptcy Code fixed the creditor's entitlement to the amount provided in the plan, and the electricity department could not revive pre-CIRP arrears or insist on payment beyond the settled dues. The corporate debtor's compliance with the plan operated as full and final settlement of the admitted claim, so the arrear demand was impermissible and was quashed. Reconnection of HT supply also could not be refused on the basis of those past dues, although the consumer remained bound to complete the other lawful formal, technical and infrastructural requirements for reconnection.

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Issues: (i) Whether the electricity department could insist on payment of pre-CIRP arrears contrary to an approved resolution plan and a compliant payment under the plan. (ii) Whether reconnection of HT supply could be refused by invoking the reconnection clauses in the electricity supply code after the resolution plan had been approved and implemented.

Issue (i): Whether the electricity department could insist on payment of pre-CIRP arrears contrary to an approved resolution plan and a compliant payment under the plan.

Analysis: The approved resolution plan had attained finality and fixed the creditor's entitlement at the amount stipulated therein. The corporate debtor had remitted the amount directed under the plan, which operated as full and final settlement of the admitted dues. Once the resolution plan was approved under the Insolvency and Bankruptcy Code, prior claims could not be revived or demanded afresh, and the creditor could not travel beyond the amount crystallised in the plan.

Conclusion: The insistence on payment of the earlier arrears was impermissible and was rejected.

Issue (ii): Whether reconnection of HT supply could be refused by invoking the reconnection clauses in the electricity supply code after the resolution plan had been approved and implemented.

Analysis: The reconnection provisions requiring payment of pending dues were held not to apply in the same manner where the consumer had undergone CIRP and the dues had already been settled under an approved resolution plan. The respondent could not use the supply code to require payment over and above the plan amount. At the same time, the petitioner remained bound to satisfy the other formal, technical and infrastructural requirements for reconnection.

Conclusion: Reconnection could not be denied on the ground of past dues, though other formalities and technical requirements could still be enforced.

Final Conclusion: The writ petition succeeded, the impugned demand was quashed, and a direction for reconnection was issued subject to completion of the remaining formalities and technical specifications.

Ratio Decidendi: Once a resolution plan approved under the Insolvency and Bankruptcy Code attains finality, all prior claims stand confined to the amount provided in the plan, and a creditor cannot insist on pre-resolution arrears as a condition for reconnection of utility supply, though other lawful reconnection requirements may still be imposed.

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