https://www.taxtmi.com/caselaws?id=762512 NCLAT Chennai dismissed appeal challenging NCLT order prohibiting adjustment of security deposit against pre-CIRP dues during moratorium period. Court held that Section 14(1)(c) of IBC, 2016 prohibits recovery actions for past dues once corporate debtor enters CIRP. Essential supplies must continue during CIRP with payment of current dues only. Citing Supreme Court precedent in Paschimanchal Vidyut case, tribunal ruled IBC provisions prevail over other statutes. Security deposit could only be adjusted against post-CIRP dues, not pre-CIRP obligations. Recovery of past dues specifically prohibited under moratorium provisions. en-us Wed, 27 Nov 2024 00:00:00 +0530 Mon, 02 Dec 2024 18:16:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=762512 NCLAT Chennai dismissed appeal challenging NCLT order prohibiting adjustment of security deposit against pre-CIRP dues during moratorium period. Court held that Section 14(1)(c) of IBC, 2016 prohibits recovery actions for past dues once corporate debtor enters CIRP. Essential supplies must continue during CIRP with payment of current dues only. Citing Supreme Court precedent in Paschimanchal Vidyut case, tribunal ruled IBC provisions prevail over other statutes. Security deposit could only be adjusted against post-CIRP dues, not pre-CIRP obligations. Recovery of past dues specifically prohibited under moratorium provisions. Case-Laws IBC Wed, 27 Nov 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=762512