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2022 (6) TMI 985 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Operational Creditors - allegation of inferior quality of goods supplied by the operational creditor - existence of debt and dispute or not - time limitation - HELD THAT - It is seen from the records that notice of default under Section 8, IBC has been delivered and affidavit under Section 9(3)(b) of IBC has also been filed and debt fell due on 20.07.2017 and this application has been filed on 08.08.2019 so the application is found well within the limitation - It is noted that the application filed under section 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 Rs. 1,00,000/-. There does not exist any dispute within the meaning of provisions of Section 8 9 of IBC, 2016. The Operational Creditor has not proposed the name of any person to function as Interim Resolution Professional. Therefore, this Bench will appoint a person from the panel of names made available to it by the Insolvency Bankruptcy Board of India. Application admitted - moratorium declared.
Issues:
Application under Section 9 of Insolvency & Bankruptcy Code, 2016 for Corporate Insolvency Resolution Process against Avon Moldplast Limited. Detailed Analysis: Issue 1: Application Filing The Operational Creditor filed an application under Section 9 of IBC, 2016 against the Corporate Debtor, Avon Moldplast Limited, claiming a debt of Rs. 12,64,405/-, including interest. The debt arose from supplying goods to the Corporate Debtor, with invoices remaining unpaid. Issue 2: Brief Facts The Operational Creditor supplied master batches to the Corporate Debtor from 05.06.2017 to 08.07.2017, amounting to Rs. 9,21,287/-. Despite requests for payment, the debt remained outstanding, leading to a demand notice and subsequent replies from both parties regarding quality issues and alleged settlements. Issue 3: Arguments by Operational Creditor The Operational Creditor contended that the Corporate Debtor failed to pay for the supplied goods, denying any settlement documents provided by the Corporate Debtor. The first unpaid invoice was issued on 05.06.2017, with subsequent payments made until 20.10.2017. Issue 4: Reply by Corporate Debtor The Corporate Debtor claimed production losses due to defective supplies by the Operational Creditor, alleging a settlement reached on 11.08.2017. The Corporate Debtor also asserted a counterclaim against the Operational Creditor, stating its commercial solvency and disputing the operational debt. Issue 5: Findings and Conclusion The Tribunal analyzed the submissions and evidence, noting the unpaid invoices, quality issues, and alleged settlements. The Tribunal found discrepancies in the Corporate Debtor's claims of losses and rejected supplies, ultimately admitting the application under Section 9 of IBC, 2016 against the Corporate Debtor, Avon Moldplast Limited. Conclusion The Tribunal admitted the application for Corporate Insolvency Resolution Process against the Corporate Debtor, declaring a moratorium, appointing an Interim Resolution Professional, and setting conditions for the resolution process. The order detailed the moratorium's effects, the role of the IRP, and the timeline for resolution proceedings, emphasizing compliance and communication with relevant parties.
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