9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (1) TMI 346 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor defaulted in making repayment - existence of debt and dispute or not - HELD THAT - The dispute raised by the Corporate Debtor does not fall within the definition of dispute as stated in preceding paragraphs, and the plea of pre-existing dispute is nothing but tenuous defense, created by Corporate Debtor against the Operational Creditor without any merit, which appears in after thought as a counter to defeat the claim of the Operational Creditor. The Registered Office of the Corporate Debtor is situated in Jaipur and therefore this Tribunal has jurisdiction to entertain and try this application. The present Application is complete and the Applicant is entitled to claim its dues, establishing the default in payment of the Operational Debt beyond any reasonable doubt - Application admitted - moratorium declared.
Issues Involved:
1. Initiation of Corporate Insolvency Resolution Process (CIRP) 2. Existence of Operational Debt 3. Dispute between the parties 4. Legitimacy of Debit Notes and Claims 5. Procedural Compliance under IBC, 2016 Detailed Analysis: 1. Initiation of Corporate Insolvency Resolution Process (CIRP): The application was filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC, 2016) by the Applicant, M/s. Uniword Telecom Limited, claiming to be an Operational Creditor, seeking the initiation of CIRP against the Corporate Debtor, M/s. Autopal Industries Limited. The Tribunal concluded that the application was complete and the Applicant was entitled to claim its dues, thereby admitting the application and initiating the CIRP. 2. Existence of Operational Debt: The Applicant claimed an outstanding amount of ?18,56,449/- as on 11.03.2016, with an additional interest of ?4,73,394/- totaling ?23,29,843/-. The Tribunal found that the Operational Creditor had provided sufficient evidence of the debt and its default, including invoices and a demand notice issued under Section 8 of IBC, 2016. 3. Dispute Between the Parties: The Corporate Debtor contended that there was a pre-existing dispute regarding the quality of goods and the rate charged, supported by a debit note and a criminal complaint. However, the Tribunal determined that the dispute was not genuine but rather a "moonshine dispute," as the Corporate Debtor failed to substantiate the claims with relevant and timely communication or evidence. The Tribunal referenced the Supreme Court's judgment in Mobilox Innovations (P.) Ltd. v. Kirusa Software (P.) Ltd., which outlines the criteria for determining the existence of a dispute. 4. Legitimacy of Debit Notes and Claims: The Corporate Debtor issued a debit note alleging inferior quality goods and excess rates charged. The Tribunal found that the Corporate Debtor did not correlate the debit note with relevant invoices and failed to provide timely communication regarding the rejection of goods. The Tribunal concluded that the debit note appeared to be a counterclaim created to avoid payment. 5. Procedural Compliance under IBC, 2016: The Corporate Debtor argued that the application and demand notice were not in the prescribed format and lacked required details. The Tribunal dismissed these claims, noting that the Corporate Debtor did not reply to the demand notice within the stipulated time and failed to provide evidence of a genuine dispute. The Tribunal also addressed the procedural compliance regarding the appointment of the Interim Resolution Professional (IRP), initially appointing Mr. Naresh Verma and later substituting him with Mr. Sourabh Malpani as per the Applicant's request. Conclusion: The Tribunal admitted the application for CIRP, appointed Mr. Sourabh Malpani as the IRP, and invoked a moratorium as per Section 14 of IBC, 2016. The Tribunal directed the IRP to carry out the CIRP in compliance with the provisions of IBC, 2016, and mandated the Operational Creditor to deposit ?2,00,000/- for the IRP's expenses. The Tribunal concluded that the dispute raised by the Corporate Debtor was not genuine and the Applicant was entitled to the claimed dues.
|
