NCLT Denies RIICO CIRP Cost Claim for Shrivallabh Pittie

NCLT Mumbai ruled on an application by Rajasthan State Industrial Development Corporation (RIICO) seeking payment of water and service charges from Shrivallabh Pittie Industries' CIRP.
RIICO claimed Rs. 2.29 crore for charges from March 2024 to May 2025, arguing they were essential for asset preservation and should be treated as CIRP costs.
The Tribunal directed the Resolution Professional to verify and provide for these charges but explicitly refused to classify them as CIRP costs, citing the water supply was a direct input, not an essential supply.
The order clarifies that contractual obligations for utilities during insolvency do not automatically qualify for priority payment under Section 5(13) of the IBC.