# Central Transmission Utility of India Limited vs. Sumit Binani & Ors.

> SC judgment dated 2026-03-23. Citation: TCN-2026-SC-00066. Central Transmission Utility of India Limited (appellant) held a Rs.108.44 crore cash deposit from…

- **Court:** SC
- **Order date:** 23 Mar 2026
- **Citation:** TCN-2026-SC-00066
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/central-transmission-utility-of-india-limited-vs-sumit-binani-ors-oexre

## Summary

### Background

Central Transmission Utility of India Limited (appellant) held a Rs.108.44 crore cash deposit from KSK Mahanadi Power Company Limited (KMPCL), the Corporate Debtor (CD), as a Payment Security Mechanism (PSM) in lieu of a Letter of Credit (LoC) for transmission charges. KMPCL entered Corporate Insolvency Resolution Process (CIRP) on 03.10.2019. The appellant unilaterally appropriated the deposit on 28.03.2020 against both pre-CIRP and post-CIRP dues. The dispute specifically concerned Rs.85.13 crores, representing pre-CIRP dues. The Resolution Professional (RP) challenged this appropriation before the NCLT.

## Facts

The appellant, Central Transmission Utility of India Limited (CTUIL), provides an established transmission system and enters into Transmission Service Agreements (TSA) with power generation units and consumers.

KSK Mahanadi Power Company Limited (KMPCL), a power generation unit, entered into a Bulk TSA with PGCIL (appellant's predecessor) and subsequently a TSA with the appellant.

KMPCL ended up in an insolvency proceeding (Corporate Insolvency Resolution Process - CIRP).

The 2nd respondent is the creditor who initiated the CIRP against KMPCL, which was admitted by the National Company Law Tribunal (NCLT) on 03.10.2019.

The 1st respondent is the Resolution Professional (RP) appointed for KMPCL, the Corporate Debtor (CD).

…

## Issues and analysis

### Issue 1: Whether the amount of Rs.85.13 crores, deposited by KMPCL with the appellant prior to CIRP, can be …

**Ratio:** The appropriation of a security deposit by an operational creditor against pre-CIRP dues

…

**Reasoning:** The security deposit, even if made in lieu of an LoC, remains the property of the

…

**Interpretation:** The IBC's moratorium under Section 14 is a crucial provision designed to

…

**Application:** The NCLT and NCLAT correctly directed that the Rs.85.13 crores (the pre-CIRP

…

## Parties

- **Judges:** K. VINOD CHANDRAN,…; SANJAY KU…
- **Appellants:** Central Transmissi…
- **Respondents:** KSK Mahanadi…; Sumit Binani &…
- **Other parties:** Committee of…; Power Grid…; +1 more
- **Advocates:** Sri. Shyam…; Ranjitha Ramachand…; +1 more

## Timeline

- **2018-08-01 — Termination Notice…**: PGCIL issued a termination notice due to the…
- **2018-09 — Deposit Unde…**: KMPCL undertook to…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/supreme-court-of-india/central-transmission-utility-of-india-limited-vs-sumit-binani-ors-oexre