IBC overrides Electricity Act, creditors should be repaid before settling government dues: Supreme Court

The Court relied on the 'waterfall mechanism' under the IBC to determine which of the corporate debtor's dues should be settled first. The IBC overrides the Electricity Act, the Court added, in view of Section 238, IBC.
Supreme Court and IBC
Supreme Court and IBC

The Supreme Court recently ruled that the Insolvency and Bankruptcy Code of 2016 (IBC) overrides the provision of the Electricity Act, 2003, in view of Section 238 of the IBC. [Paschimanchal Vidyut Vitran Nigam Limited v. Raman Ispat Private Limited and Others]

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