Supreme Court: IBC Prioritizes Secured Creditors Over Electricity Dues

Paschimanchal Vidyut Vitran Nigam Ltd. Vs Raman Ispat Private Limited & Ors. (Supreme Court of India) A recent Supreme Court case involving Paschimanchal Vidyut Vitran Nigam Ltd. and Raman Ispat Private Limited has shed light on the priority given to secured creditors over electricity dues under the Insolvency and Bankruptcy Code (IBC). This article analyzes the court’s interpretation of the IBC and its impact on creditors and the power sector. Analysis: The Supreme Court’s ruling clarifies that the IBC prioritizes dues owed to secured creditors over electricity dues. The court...