TMI Blog2021 (8) TMI 292X X X X Extracts X X X X X X X X Extracts X X X X ..... 4 (2-A) will not protect. Reading the 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 essential supply similarly, use of electricity in the present matter for running the printing business of the Corporate Debtor cannot get protection as essential supply. Thus there are no fault with the impugned order. The Learned Counsel for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ₹ 7,18,647 and this amount has not been paid by the applicant since the initiation of CIRP. On the other hand, Ld. RP submitted that since there are no sufficient funds to pay the dues, therefore, the applicant is not in a position to pay the amount. Hence without going into the merits of the fact, we direct the RP/Applicant to pay ₹ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owards 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 debtor as may be specified shall not be terminated or suspended or interrupted during moratorium period. [(2-A) Where the interim resolution professional or resolution professional, as the case may be, considers ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing 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 essential supply similarly, use of electricity in the present matter for running the printing business of the Corporate Debtor cannot get protection as essential supply. 10. This being so, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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