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ICICI Bnak Ltd. Versus Innoventive Industries Ltd.

2017 (10) TMI 568 - NATIONAL COMPANY LAW TRIBUNAL, MUMBAI

Insolvency 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 purpos .....

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rvices 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 .....

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H KUMAR AND MR. V. NALLASENAPATHY, JJ. For The Petitioner : Nirav Shah, Adv. For The Respondent : Ameya Gokhale and Meghna Rajadhyaksha ORDER The Applicant is a public sector undertaking company supplying electricity to the Public of Maharashtra, since this applicant has been supplying electricity to this corporate debtor, it has filed this Miscellaneous Application stating that for this corporate debtor failed to pay to the electricity supplied to the Industry run by the Corporate Debtor, the A .....

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ill August 2017. Applicant's Counsel submits that as on 18.01.2017, the total outstanding arrears of electricity bill payable by the Corporate Debtor for High Tension Consumer No. 184279045210 is ₹ 1,25,83,970 and High Tension Consumer No. 184819033250 is ₹ 1,55,43,090 total aggregating to ₹ 2,81,21,060. Since the Corporate Debtor made payment of ₹ 48,07,402 on 18.08.2017, the total outstanding arrears payable by the Corporate Debtor as on date has aggregated to ͅ .....

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s are not covered under Section 14(2) of the IB Code henceforth, the Counsel prays this Bench to clarify that supply of electricity to this company for manufacturing purpose is not essential service. 4. To which the Corporate Debtor company replied stating that since moratorium is presently in force, no suit/legal proceeding can lie against the Debtor Company including any execution of any judgment, decree, order in any Court of Law, Tribunal/authority. Therefore, the Counsel prays that the dema .....

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bes 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 input to the output produced or supplied by the Corporate Debtor. The Corporate Debtor .....

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already made payment of ₹ 1,68,77,148 to the Applicant towards electricity dues from the date of Admission Order. For this company has already been suffering from cash crunch, the delay in payment cannot be taken into consideration for discontinuing supply of power to the Company. 7. Apart from these, the Counsel further submits that this company has to receive Industrial Promotion Subsidy in the form of VAT refunds for the last 3 years amounting to an average of ₹ 25 crores per yea .....

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nsider 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 .....

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