Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding
  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

TMI Blog

Home

2018 (8) TMI 1829

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... this petition/application has an essence of a dispute ; therefore, this petition/application cannot be admitted for the CIRP and deserves rejection - petition dismissed.
M. K. SHRAWAT Judicial Member Rupesh Lanjekar , for the petitioner/applicant. Chetan Yadav , instructed by Ram and Co., for the respondent/debtor. ORDER The petitioner/applicant, viz., "M/s. Cowgule Construction Chemicals P. Ltd." (hereinafter as the operational creditor) has initially filed a winding up petition before the hon'ble Bombay High Court under section 433(e) of the Companies Act, 1956 on September 30, 2016 but subsequently after enactment of the Insolvency and Bankruptcy Code, 2016, this petition has been transferred to this Bench and ther .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... e issued to carry out water proofing works. The work order dated April 20, 2014 bearing No. PHL/DIAL/Waterproofing Works/Wo/515 was for the waterproofing work and work order dated September 26, 2014 was issued for the additional work, i. e., applying of water proofing treatment in swimming pool area. 7. In respect of above work orders the operational creditor has raised a bill of ₹ 4,72,332 and ₹ 2,41,780 respectively. As per the operational creditor towards first invoice the debtor has not paid any amount however, an amount of ₹ 34,742 has been paid by the debtor towards second invoice. 8. As the amount of ₹ 13,45,603 (which includes the outstanding bill amount of ₹ 6,09,113 of the sub-contractors and ₹ .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ply is annexed with the petition. 14. Further that, since the petition has been transferred to this Bench, as per the provisions of the Code, the operational creditor has furnished the requisite Form under the Code. The copy of Form 5 is also served upon the debtor and it has been duly received by the debtor. The debtor has filed reply to Form 5. 15. It is further stated that though the debtor is raising the "dispute" now it could have been raised before making the part-payment towards the second invoice. The part-payment is an evidence of an acceptance of debt. 16. The learned advocate for the operational creditor has finally argued that, since the outstanding amount is not paid and the debtor is merely denying the debt this p .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... to avoid unnecessary and unpleasant steps." 18. It is further stated that in the said reply the debtor has not merely denied his liability however, it was brought to the notice of the operational creditor that the work carried out by the debtor was not according to the work standards and because of the same the debtor had to do that work by another expert and consequently the debtor has incurred huge losses. 19. It is further submitted that, it was not the first time when the debtor has questioned about the quality of work of the operational creditor but via an e-mail dated October 12, 2015 the debtor has raised the issue of quality of the work done by the operational creditor. 20. It is further submitted that, in the said mail the .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... nce relevant portion extracted below : "It is really surprised to see your illogical explanation mail, which is meaningless at this stage specially when you are well aware that due to your poor quality of works, we have been badly suffering-getting damaged our finished products through water leakages at most of the places. Ample evidence prove that most of the areas treated by you are failed in water tightness and my team had informed you or your team time to time through mail/phone call/sms etc., with photos of dam aged our finished products, which are unattended by you/your team since couple of months, which is totally none ethical approach . . . Once rectification of your defective works over by this external agency engaged by u .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... Considering the above facts and circumstances a conclusion can be drawn that the debt claimed in this petition/application has an essence of a "dispute" ; therefore, this petition/application cannot be admitted for the CIRP and deserves rejection. 28. Before coming to the final conclusion it is worth to place reliance on the decision cited by the learned advocate of the debtor of the hon'ble Supreme Court of India in the case of Mobilox Innovations P. Ltd. v. Kirusa Software P. Ltd. [2017] 205 Comp Cas 324 (SC) ; [2017] 4 Comp LJ 255 (SC), dated September 21, 2017 which is reproduced as follows (page 373 of 205 Comp Cas) : "40. It is clear, therefore, that once the operational creditor has filed an application, which .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

 

 

 

 

Quick Updates:Latest Updates