Adjustment of security payment deposit against pre-CIRP dues not allowable: NCLAT Chennai

Central Transmission Utility of India Ltd. Vs Summit Binani (NCLAT Chennai) NCLAT Chennai held that in the scheme of the IBC, 2016 once a Corporate Debtor is admitted into CIRP, all recovery action for past dues come to a standstill. Thus, held that adjustment of security payment deposit against pre-CIRP dues not allowable. Facts- KSK Mahanadi Power Company Limited (Corporate Debtor) is a company engaged in business of power generation. The Corporate Debtor was admitted into Corporate Insolvency Resolution Process on 03.10.2019. Corporate Debtor had entered into a Bulk Power Transmission Agree...