During the CIRP of Surya Power Ltd, the State Government proposes to cancel its generation licence only…
The Explanation to section 14(1), inserted with effect from 28 December 2019, says a licence, permit, quota, concession or similar grant by a government or authority "shall…
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During the CIRP of Surya Power Ltd, the State Government proposes to cancel its generation licence only because the company is under insolvency, although Surya Power has paid all current dues for the licence during the moratorium. Under the Explanation to section 14(1):
Answer and explanation
Correct answer B
The Explanation to section 14(1), inserted with effect from 28 December 2019, says a licence, permit, quota, concession or similar grant by a government or authority "shall not be suspended or terminated on the grounds of insolvency". The protection depends on there being no default in paying current dues for its use during the moratorium, a condition Surya Power has met. The 2026 amendment adds a similar protection after a resolution plan is approved, in section 31(5).
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