Transitional credit claim for period prior to approval of resolution plan by NCLT is not allowable

ESL Steel Limited Vs Principal Commissioner (Jharkhand High Court) Jharkhand High Court held that as liability of earlier management cannot be shifted to current management, similarly, credit of earlier management cannot be shifted to current management. Hence, claim of transitional credit prior to the approval of the resolution plan by the National Company Law Tribunal (NCLT) is not allowable. Facts- The State Bank of India, being the major financial institution of the Petitioner, had filed a Company Petition before the National Company Law Tribunal, Kolkata, under the provisions of the Insol...