Electricity Supply Must Continue During Corporate Insolvency Process Despite Pending Dues Under IBC Section 14(2)

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....NCLAT upheld that electricity supply cannot be discontinued during CIRP period under Section 14(2) of IBC, even if payment is pending. The tribunal determined electricity as an essential supply within Regulation 32 of CIRP Regulations, requiring protection during moratorium. While unpaid electricity dues form part of CIRP costs, the Resolution Professional must endeavor to clear outstanding payments, potentially through interim finance. The tribunal directed continuation of electricity supply necessary for manufacturing facilities, emphasizing that non-payment cannot justify discontinuation. IBBI was advised to expedite proposed amendments to Regulation 32 to address operational issues regarding essential services during CIRP. The appeal was disposed of with directions to maintain power supply to the corporate debtor.....