Under Section 14(2) and 14(2A) of the IBC, 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. The rationale for continuing supply of essential goods or services is:
The Insolvency Law Committee (2020) in its report suggested that the continuation of critical supplies to the corporate debtor was important to ensure that the corporate debtor continues as a going concern while undergoing CIRP. And such supplies will also preserve value of the corporate debtor and ensure success of the resolution plan.