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TMI Blog2018 (12) TMI 1682X X X X Extracts X X X X X X X X Extracts X X X X ..... 9(3)(c) of the I B Code. This fact is also otherwise not in dispute. As the application is complete in all respects, this application is allowed. Application admitted - moratorium declared. - CP (IB) No. 228/KB/2018 - - - Dated:- 19-12-2018 - Shri Madan B. Gosavi, Hon'ble Member (J) Shri Ratnanko Banerjee, Shri D.N.Sharma, Shri Shaunak Mitra, Shri Shwetank Nigam, Ms. Ankita Shah For the Operational Creditor. Shri Rajshri Dutta, Ms. Swapna Choubey, Mrs. Indrani Chakraborty For the Corporate Debtor ORDER This application under section 9 of Insolvency Bankruptcy Code, 2016 (in short, I B Code) is filed by M/S. Gulf Oil Lubricants India Limited - the Operational Creditor formerly known as M/S. Gulf Oil Corporation Limited, the company which merged with the applicant, i.e. M/s.Gulf Oil Lubricants Limited as per the order of Hon'ble Andhra Pradesh High Court vide order dated 16.02.2014. 2. This application is filed against M/S. Eastern Coalfields Limited the Corporate Debtor to start Corporate Insolvency Resolution Process (in short, CIRP ) of the Corporate Debtor as it did not pay the interest amount on the orig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8. I heard the Ld. Sr. Counsel, Mr. Banerjee appearing for the Operational Creditor and the Ld. Counsel for the Corporate Debtor at length. Ld. Sr. Counsel submitted that although principal sum is paid by the Corporate Debtor, it did not pay interest amount of ₹ 4,87,338/-. According to the Ld. Sr.Counsel, the debt includes interest payable on the debt. He pointed out the definition of the debt under section 3(12) of the I B Code and also the definition of the Operational debt under section 5(21) of I B code. Ld. Sr. Counsel relying on rule reported in [2009] 3 Supreme Court Cases 527 in the case of Universal Vijay Industries Ltd. -vs- NATL Technologies Limited submitted that in view of section 61(2)(a) of Sale of Goods Act, interest is payable on delayed payment in terms of section 3 of Interest Act, 1978 and also under sections 5 and 6 of Interest Act of Delayed Payment to Small Ancillary Industrial Units Act, 1993. According to the Senior Counsel, amount towards interest is also the debt. Ld. Sr. Counsel further submitted that earlier correspondences between the parties were in respect of proceeding of merger. The claim of the Operational Creditor herein is first ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hase orders (at page 206 onwards) show that the Corporate Debtor by way of purchase orders placed the order to suppl the goods to the Operational Creditor. The purchase orders start with the words, please arrange to supply the following material , etc. How it could be binding on the Operational Creditor. It appears that Ld. Counsel's submissions are based on wrong reading of the material on record. As against this, the invoices (at page 223 onwards) under which goods were sold and supplied clearly indicate that overdue amount was carrying interest @ 18% p.a. beyond credit period. Each invoice bears signature of the authorised representative of the Corporate Debtor and thereby the terms to pay interest on delayed payment was accepted by the Corporate Debtor. Not only that at page 236, the Operational Creditor produced on record the copy of the general terms of conditions of demand letter. Term No.2 clearly states that interest @ 18 % p.a. on such overdue delayed payment also becomes payable. 13. On behalf of the Corporate Debtor, it is submitted that the earlier correspondence between the parties, more particularly, demand letters send by the Operational Creditor did n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itor under Section 9 of the Insolvency Bankruptcy Code, 2016 is hereby admitted for initiating the Corporate Insolvency Resolution Process in respect of M/s. Eastern Coalfields Ltd. Moratorium order is passed for a public announcement as stated in Sec. 13 of the IBC, 2016. (ii) The moratorium is declared for the purposes referred to in Section 14 of the Insolvency Bankruptcy Code, 2016. The IRP shall cause a public announcement of the initiation of Corporate Insolvency Resolution Process and call for the submission of claims under Sec. 15. The public announcement referred to in clause (b) of sub-section (1) of Insolvency Bankruptcy Code, 2016 shall be made immediately. (iii) Moratorium under Sec. 14 of the Insolvency Bankruptcy Code 2016 prohibits the following: a) The institution of suits or continuation of pending suits or proceedings against the corporate debtor including execution of any judgement, decree or order in any court of law, tribunal, arbitration panel or other authority; b) Transferring, encumbering, alienating or disposing of by the corporate debtor any of its assets or any legal right or beneficial interest therein; ..... X X X X Extracts X X X X X X X X Extracts X X X X
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