2021 (8) TMI 292

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....eal is arising out of impugned order dated 04.03.2021 passed by the Adjudicating Authority (National Company Law Tribunal), New Delhi, Court-V in I.A. No. 3879/2020 in C.P. (IB)-1974/ND/2019. The impugned order reads as under: "IA-3879/2020 We have heard the Ld. RP and the Ld. Counsel for the respondent. In course of hearing, Ld. Counsel for the respondent referred our order dated 22.01.2021 and submitted that he has received an information from the department that prior to the initiation of CIRP, there was no outstanding dues against the electricity supply. But after the initiation of CIRP, the total dues of electricity is of Rs. 7,18,647 and this amount has not been paid by the applicant since the initiation of CIRP. On the other ha....

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....ng orders of liquidation, which application is pending. 5. The Learned Counsel for the Appellant, Mr. Jain, accepts that before CIRP started there were no outstanding bills of electricity. The amount of Rs. 7,18,647/- towards consumption of electricity has been incurred during CIRP process. The Learned Counsel for the Appellant on being asked stated that this cost was incurred as the Appellant - Resolution Professional was keeping the Corporate Debtor a going concern which is related to printing. 6. Section 14 of IBC relates to moratorium and sub-section (2) and (2-A) of Section 14 are relevant for the present matter. Sub-section (2) and (2-A) of Section 14 read as under: "(2) The supply of essential goods or services to the corporate d....

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....he 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 sanitation purposes, and not for generation of hydro-electricity." 9. Reading the above Regulation 32, it is clear that the words 'essential goods or services' as used in Section 14(2) have been given a particular meaning to which moratorium applies. The illustration under Regulation 32 makes the position clear. Use of electricity by the Corporate Debtor in CIRP would be essential supply to the extent it is not a direct input to the output produced or supplied by the Corporate Debtor. Like using of water to generate hydro-electricity is not essent....