By S&S Co. Advocates & Solicitors · Published 8 April 2026 · Informational content, not legal advice
About this article: A general explainer prepared by S&S Co. Advocates & Solicitors on a recurring type of dispute. It does not report a specific judgment or order, names no parties and gives no case citation, so it should not be cited as authority. Law and practice change; please verify against the current statute and primary sources before relying on it.
Section 14 of the Insolvency and Bankruptcy Code, 2016 imposes a moratorium when a corporate insolvency resolution process begins. Section 14(2) provides that the supply of essential goods or services to the corporate debtor, as specified, shall not be terminated, suspended or interrupted during the moratorium. The CIRP Regulations list items such as water, electricity, telecommunication and information technology services, and require the resolution professional to pay for supplies made during the process.
A common dispute arises when a utility disconnects supply because of arrears accrued before the start of the process. A utility generally cannot use pre-CIRP arrears as a reason to disconnect during the moratorium, since the aim is to keep the corporate debtor a going concern. The utility is not left without a remedy, because it can file its claim for the arrears in the process. In Paschimanchal Vidyut Vitran Nigam Ltd. v. Raman Ispat Pvt. Ltd. (2023), the Supreme Court dealt with the treatment of pre-CIRP electricity dues in insolvency.
A tribunal asked to restore supply will usually do so on the resolution professional's undertaking to pay the dues that accrue after the start of the process as they fall due.