9911796707
TMI Blog2017 (10) TMI 568X X X X Extracts X X X X X X X X Extracts X X X X ..... y supplied to the Industry run by the Corporate Debtor, the Applicant has already issued notices u/s 56(1) of the Electricity Act, 2003 on 20.01.2017,17.02.2017 & 26.03.2017 to this consumer in respect two connections maintained by this debtor giving 15 days' time for making payment of the dues payable to the Applicant. 2. In spite of serving such notices upon this Corporate Debtor, Corporate Debtor has failed to make payments as demanded by the Applicant herein except a part payment of Rs. 48,07,402 towards dues that arose from January 2017 till August 2017. Applicant's Counsel submits that as on 18.01.2017, the total outstanding arrears of electricity bill payable by the Corporate Debtor for High Tension Consumer No. 184279045210 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lation 32 of IBC of India, therefore, if at all supply is disconnected, it will be in violation of the Admission Order dated 17.01.2017. The Counsel further submits that supplying of electricity cannot be considered as direct input as the Corporate Debtor is involved in production of tubes and motor vehicle components, not something like generating hydel energy. 6. Since this essential service is included in IRP costs under Regulation 31 of IBBI (CIRP) Regulations, this Applicant is entitled to make its claim under the head of IRP costs ahead of all other costs covered under the aforesaid Regulation. Therefore, the Counsel submits this service is to be treated as essential service not as an input to the output produced or supplied by the C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t left to this Bench to consider is - as to whether supply of electricity for manufacturing activities of the company is an essential service or not as mentioned under Regulation 32 of the IBBI (CIRP) Regulations, 2016. 10. For the benefit of understanding of this Regulation, let us read it, which is as follows: "The essential goods and services referred to in section 14(2) shall mean - (1) Electricity; (2) Water; (3) Telecommunication services; and (4) Information technology services, to the extent these are not a direct input to the output produced or supplied by the corporate debtor. Illustration - Water supplied to a corporate debtor will be essential supplies for drinking and sanitization purposes, and not for generation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y that this electricity is used for lighting purpose, and admittedly using for running manufacturing business, those service will not fall within the ambit of Section 14(2) of moratorium. Every month, since this company has been consuming electricity for almost one crore of rupees, such supply will not be treated as supply for meeting essential requirements of the company. 12. Therefore, this Bench hereby clarifies that the electricity supplying to the debtor company will not fall within essential supplies classified in Regulation 32 of IBBI (CIRP) Regulations, therefore, section 14(2) of Insolvency and Bankruptcy Code shall not be invoked to prohibit the supplier from terminating or suspending services, accordingly, this MA 157/2017 is he ..... X X X X Extracts X X X X X X X X Extracts X X X X
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