https://www.taxtmi.com/caselaws?id=356528 Under the insolvency moratorium, performance guarantees are excluded from the definition of security interest and therefore are not protected from invocation, while other bank guarantees that fall within security interest remain covered. The commentary also states that an unconditional guarantee must ordinarily be honoured, subject to limited exceptions. Electricity is treated as an essential service, so its termination, suspension or interruption during moratorium is impermissible; however, the corporate debtor must still clear current consumption charges. The overall position is that moratorium protection does not extend to performance guarantees, but it does preserve essential utility supply during the insolvency process. en-us Fri, 09 Feb 2018 00:00:00 +0530 Mon, 05 Mar 2018 18:39:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=356528 Under the insolvency moratorium, performance guarantees are excluded from the definition of security interest and therefore are not protected from invocation, while other bank guarantees that fall within security interest remain covered. The commentary also states that an unconditional guarantee must ordinarily be honoured, subject to limited exceptions. Electricity is treated as an essential service, so its termination, suspension or interruption during moratorium is impermissible; however, the corporate debtor must still clear current consumption charges. The overall position is that moratorium protection does not extend to performance guarantees, but it does preserve essential utility supply during the insolvency process. Case-Laws Insolvency and Bankruptcy Fri, 09 Feb 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=356528