Clean slate principle bars recovery of pre-CIRP electricity dues and surcharge as a condition for reconnection.

After approval of a resolution plan, pre-CIRP claims not provided for in the plan, including connected electricity dues and late payment surcharge arising from the same period, stand extinguished under the clean slate principle and cannot be enforced indirectly against the successful resolution applicant. The HC held that the respondent could not insist on payment of pre-CIRP outstanding electricity charges or LPSC as a condition for a fresh connection, and the demand was unlawful. Authorities on section 56 of the Electricity Act were distinguishable because they concerned escaped assessment or later billing corrections, not a pre-existing surcharge already reflected before CIRP.

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Issues: Whether the respondent could demand pre-CIRP outstanding electricity dues and late payment surcharge as a precondition for a fresh electricity connection after approval of the resolution plan.

Analysis: The petitioner was a successful resolution applicant under an approved resolution plan. The record showed that the claimed LPSC had already formed part of the pre-disconnection dues before commencement of CIRP, and the respondent's contention that the surcharge arose only upon the later demand was contrary to the records. Once the resolution plan was approved, claims not provided for in the plan stood extinguished on the clean slate principle, and the respondent could not reopen pre-CIRP electricity liabilities indirectly by insisting on payment of LPSC. The authorities on section 56 of the Electricity Act, 2003 were distinguishable because they concerned escaped assessment or later correction of billing errors, not a pre-existing surcharge already reflected in the bills before CIRP.

Conclusion: The demand for pre-CIRP outstanding electricity charges and the connected LPSC was held to be unlawful, and the respondent was restrained from denying electricity supply on that basis.

Final Conclusion: The writ petition succeeded, and the petitioner obtained relief against recovery of the impugned pre-CIRP electricity-related dues as a condition for reconnection.

Ratio Decidendi: After approval of a resolution plan, pre-CIRP claims not provided for in the plan, including connected statutory levies arising from the same period, stand extinguished and cannot be enforced indirectly against the successful resolution applicant.

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