2017 (10) TMI 568

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....e debtor failed to pay to the electricity 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 ....

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....city is essential service as stated under a regulation 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....

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....n view of the submission made from both sides now the point 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....