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2017 (10) TMI 568 - Tri - Insolvency and BankruptcyInsolvency and Bankruptcy Code invoked to prohibit the supplier from terminating or suspending services - Held that:- Electricity, water and telecommunication services and Information Technology service are to be considered as essential as long as these services are not a requirement to the output produced or supplied by the Corporate Debtor. Under this regulation, an illustration also been given saying that water is to be considered as essential service as long as it is used for drinking purpose and sanitization purpose but not for generating electricity. If the same electricity is used as input for manufacturing purpose making huge bill of lakhs of rupees to get output from that industry, then to our understanding, supply of electricity is used as input for manufacturing purpose to get output from the factory and it obviously to make profits. Essential service is a service for survival of human kind, but not for making business and earn profits without making payment to the services used. When company is using it for making profit, then the company owes to make payment to the services/goods utilized in manufacturing purpose. Since it is not the defense of the debtor company 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. 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
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