NCLAT held Electricity was essential supply, couldn’t be disconnected during moratorium period under IBC

Maharashtra State Electricity Distribution Company Ltd. & Anr. Vs Ravi Sethia Resolution Professional of Morarjee Textiles Ltd. (NCLAT Delhi) Conclusion:  Electricity being an essential supply could not be disconnected during moratorium period under section 14 of the Insolvency and Bankruptcy Code, 2016 (Code) as providers of necessary products or services were not permitted to stop or reduce their delivery during the moratorium period. Even if payment for these services or items was not made during the CIRP’s period, the corporate debtor was still entitled to obtain necessary supplies....