2017 (7) TMI 1074 - Tri - Insolvency and Bankruptcy

Initiation of Insolvency Resolution process - proof of debt - Held that - To prove the case of the Petitioner, the Petitioner filed Purchase Order which is not disputed by Corporate Debtor, invoices raised by the Petitioner also not disputed by the Corporate Debtor and also postdated cheques issued to the Petitioner against the invoices are also not disputed, therefore, it has to be construed that the Petitioner has proved that goods have been supplied to the Corporate Debtor, consideration has not been paid, as to default is concerned for no payment has been made and the cheques issued by the Corporate Debtor having been dishonored, it is hereby construed that the Corporate Debtor has defaulted in making the repayment after supply of goods by the Petitioner herein. This Petition clearly reveals that there is a debt as defined in Section 3(11) of I&B Code 2016, also there is default in this case within the meaning of Section 3(12) of I&B Code 2016, this Bench hereby admits this petition filed under Section 9 of I & B Code 2016, declaring moratorium with consequential directions

Summary

Issues:
Company Petition under Section 9 of The Insolvency & Bankruptcy Code, 2016 for non-payment of dues by the Corporate Debtor.

Analysis:
1. The Petitioner filed a Company Petition under Section 9 of the Insolvency & Bankruptcy Code, 2016, against the Corporate Debtor for non-payment of dues amounting to ?7,01,525. The Petitioner raised invoices for goods supplied to the Corporate Debtor, who failed to repay within the agreed credit period of 45 days.

2. The Corporate Debtor issued postdated cheques against the invoices, but all cheques were dishonored. The Petitioner issued statutory notices under Section 8 of the Code, followed by a Company Petition when the debtor failed to respond or make payments.

3. The Corporate Debtor failed to reply within the stipulated time frame to the notices sent under the Code. The Petitioner presented evidence of dishonored cheques and non-payment through a certificate from the bank, establishing default by the Corporate Debtor.

4. The Corporate Debtor's defense included requesting to withhold certain cheques, but subsequent correspondence and bounced cheques indicated non-payment. The Corporate Debtor admitted liability for some dues but disputed the total amount claimed by the Petitioner.

5. The Petitioner provided unchallenged evidence of Purchase Orders, raised invoices, and dishonored cheques, proving the supply of goods and non-payment by the Corporate Debtor, leading to default as per the provisions of the Code.

6. The Tribunal found the Petitioner's claims substantiated, as the Corporate Debtor failed to respond to notices, did not dispute the invoices, and acknowledged dishonored cheques. The lack of timely response and non-payment by the Corporate Debtor validated the Petitioner's petition under Section 9 of the Code.

7. The Tribunal admitted the petition, declaring a moratorium on legal actions against the Corporate Debtor, and directed the continuation of essential supplies. The order of moratorium was set to be in effect until the completion of the insolvency resolution process or liquidation, as per the Code.

8. The Tribunal referred the case to the Insolvency Bankruptcy Board of India for the appointment of an Insolvency Professional to act as an Interim Resolution Professional. The Registry was instructed to communicate the order to both parties involved in the case.