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2022 (4) TMI 1303 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Operational Creditors - existence of debt and dispute or not - HELD THAT - The corporate debtor has admitted that the principal amount due is ₹ 35,44,350/- which is more than the threshold limit at the relevant point of time. The last payment was made on 30th December 2017. Thus, the debt is payable in fact and in law. The interest @ 18% on the principal amount has not been mentioned in any invoice by the operational creditor and hence is not liable to be paid - It is seen from the records that notice of default under Section 8 has been delivered and an affidavit under Section 9(3)(b) of IBC has also been filed. It is noted that the application filed u/s 9 is complete and complies with the requirements of the relevant provisions of IBC, 2016 read with Rules and Regulations made thereunder. The outstanding amount is more than the threshold limit of ₹ 1,00,000/-. There does not exist any dispute within the meaning of provisions of Section 8 9 of IBC, 2016. Application admitted - moratorium declared.
Issues:
Initiation of Corporate Insolvency Resolution Process under Section 9 of IBC, 2016 based on non-payment of dues by the Corporate Debtor. Detailed Analysis: Brief Facts of the Case: The Operational Creditor filed an application under Section 9 of IBC, 2016 against the Corporate Debtor for non-payment of dues related to supplying pesticide products. Despite multiple communications and legal notices, the outstanding amount remained unpaid by the Corporate Debtor. Arguments by Operational Creditor: The Operational Creditor claimed that the Corporate Debtor failed to pay the due amount despite part-payments and issued legal notices demanding the outstanding sum along with interest. The Operational Creditor provided evidence such as invoices, demand notices, ledger accounts, and bank statements to support the claim. Arguments by Corporate Debtor: The Corporate Debtor contended that the Operational Creditor failed to reprocess a certain material, causing losses to the Corporate Debtor. The Corporate Debtor disputed the amount claimed, mentioning pricing discrepancies and proposed part payments which were rejected by the Operational Creditor. The Corporate Debtor also alleged that the demand notice was invalid and expressed willingness for an amicable settlement. Rejoinder by Operational Creditor: The Operational Creditor refuted the Corporate Debtor's claims, emphasizing that the pending dues were not related to the disputed material reprocessing issue. The Operational Creditor denied agreeing to reprocess any material or providing a reduction in the outstanding amount. Findings & Conclusion: The Adjudicating Authority found that the Operational Creditor's application under Section 9 of IBC, 2016 was complete and compliant with the necessary provisions. The outstanding amount exceeded the threshold limit, and no dispute existed to prevent admission of the application. The Authority appointed an Insolvency Professional and declared a moratorium on the Corporate Debtor's assets. Order & Directions: The application for initiating Corporate Insolvency Resolution Process was admitted, and a moratorium was declared. An Insolvency Professional was appointed, and various conditions and restrictions were imposed on the Corporate Debtor during the resolution process. The Operational Creditor was directed to deposit a specified amount with the appointed IRP. The matter was listed for a progress report, and the order was to be communicated to all concerned parties.
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