TaxTMI 
TaxTMI 
2018 (2) TMI 1836
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....mitted that the order of 'Moratorium' will be applicable only in respect of the amount as is payable by the 'Corporate Debtor' to the appellant towards supply of electricity as was due for the period prior to passing of order of 'Moratorium'. According to him, the order of 'Moratorium' will not be applicable to the current dues towards supply of electricity during the period of 'Moratorium'. 3. On the other hand, according to learned counsel for the 'Resolution Professional', in view of Regulations 31 & 32 of the 'Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016', the Appellant is duty bound to supply the essential goods and services, including the electricity, water etc. 4. ....
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....the Appellant pursuant to the order passed by this Appellate Tribunal, but for the present, the 'Corporate Debtor' has no fund to pay any further amount. 6. We have heard learned counsel for the parties and perused the relevant provisions of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as "I&B Code") and Regulations 31 and 32 as referred to above. 7. Section 14 of the 'I&B Code' deals with 'Moratorium'. Sub-section (2) of Section 14 relates to supply of essential goods or services to the 'Corporate Debtor', which reads as follows: "14. Moratorium. ─ (1) Subject to provisions of sub-sections (2) and (3), on the insolvency commencement date, the Adjudicating Authority shall by order declare moratorium for prohib....
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....r passes an order for liquidation of corporate debtor under section 33, the moratorium shall cease to have effect from the date of such approval or liquidation order, as the case may be." 8. From sub-section (2) of Section 14 of the 'I&B Code', it is clear that supply of essential goods or services to the 'Corporate Debtor', as may be specified by the 'Insolvency and Bankruptcy Board of India', cannot be terminated or suspended or interrupted during the period of 'Moratorium'. 9. Regulation 31 relates to 'Insolvency Resolution Process Costs' whereas Regulation 32 relates to 'Essential Supplies'. As per Regulation 31, the amounts due to suppliers of essential goods and services under Regulation 32 are to be included in the 'Insolvency Reso....
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....orporate Debtor', require to be included towards 'Insolvency Resolution Process Costs' as per sub-section 13(e) of Section 5. 12. From sub-section (2) of Section 14 of the 'I&B Code', it is also clear that essential goods or services, including electricity, water, telecommunication services and information technology services, if they are not a direct input to the output produced or supplied by the 'Corporate Debtor', cannot be terminated or suspended or interrupted during the 'Moratorium' period. 13. However, from the provisions of 'I&B Code' and Regulations, we find that no prohibition has been made or bar imposed towards payment of current charges of essential services. Such payment is not covered by the order of 'Moratorium'. Re....