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TMI Blog2022 (2) TMI 795X X X X Extracts X X X X X X X X Extracts X X X X ..... ar Jain, Chief Financial Officer of M/S. Sangam (India) Limited ('Applicant'), claiming to be an Operational Creditor with a prayer for initiation of Corporate Insolvency Resolution Process ('CIRP') against M/S. Suzuki Textiles Limited ('Respondent'/'Corporate Debtor'). 2. The Applicant having its registered office at Atun, Chittorgarh Road, Bhilwara-311001 (Rajasthan), is involved in the manufacturing of spinning of PV Yarns, weaving of Grey Fabrics and also finished Textile Products and sale thereof to various customers. The Application has been filed in Form 5 as prescribed in Rule 6(1) of the Rules. 3. The Respondent is a public limited Company incorporated under provisions of the Companies Act, 1956 on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g payment on the sale transaction and in default of the payment within the said credit period the interest @ 18% per annum is charged on outstanding invoices. As per the abovesaid terms, a total of Rs. 2,13,16,728/- is due and payable by the Respondent to the Applicant. 7. The Applicant issued and served a Demand Notice dated 06.08.2019 to the Respondent under Section 8 of the Code as per Form 3 as prescribed under Rule 5 of the Rules at its registered office demanding a sum of Rs. 2,13,16,728/- along with further interest @ 18% per annum on the invoices from 01/07/2019 until full payment, within 10 days of receipt of notice vide e-mail dated 07.08.2019. The demand notice was accompanied by computation of interest, details of invoices and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Applicant are not accompanied by a certificate from the banker confirming that there is no payment of the debt by the corporate debtor. 11. It is further submitted that the Applicant's claim is barred by limitation as the last annexed invoiced is dated 30.12.2015. Therefore, making alleged date of default as 03.01.2016, because of the mercantile practices of the business providing four days of free line of credit after the supply of goods. The Respondent has stated in the reply that the Applicant has suppressed the communication between the parties in the intervening years between the default and the filing of the petition. Lastly, it has been submitted that the Respondents did not receive the demand notice issued by the Applicant. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ound them to be in order. The Registered Office of the Respondent is situated in Bhilwara and therefore this Adjudicating Authority has jurisdiction to entertain and try this Application. Also, the matter is within the purview of Law of Limitation as the last payment as stated was made on 07.03.2017 and the Application was filed on 15.10.2019. It is a settled principle that when payment on account of a debt is made before the expiration of the prescribed period, a fresh period of limitation shall be computed from the time when the payment was made. Therefore, the present application has been filed within limitation. 15. The first issue for consideration is whether the demand notice in Form No. 3 dated 06.08.2019 was served upon the Respond ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... b) of the Code to the effect that there is no notice given by the Respondent relating to dispute of the unpaid operational debt (Page 653-655 of the Application). This Adjudicating Authority has held above that the demand notice in Form No. 3 was properly delivered by the Operational Creditor and no pre-existing dispute is proved. 18. It has been shown that the Corporate Debtor has failed to make payment of the aforesaid amount due as mentioned in the statutory notice till date. It is also observed that the conditions under Section 9 of the Code stand satisfied. Hence, this Adjudicating Authority is inclined to commence CIRP against the Corporate Debtor as envisaged under the provisions of IBC, 2016. 19. Under sub-section (4) of Section 9 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rovisions of the Code and calling for claims from the creditors of the Corporate Debtor; and collation of the same shall be done. (ii) Further, as a sequel of admission, moratorium as envisaged under Section 14 of the Code is invoked in relation to the Corporate Debtor which will be in vogue during the CIRP of the Corporate Debtor. The IRP shall carry out CIRP strictly as per the timelines specified and as envisaged under the provisions of the Code in relation to the Corporate Debtor. (iii) The said IRP shall act strictly in accordance with the provisions of the Code and with a view to defray his expenses to be incurred and fees on account, the Applicant is directed to deposit a sum of Rs. 2,00,000/- (Two Lakhs Only) to the account of I ..... X X X X Extracts X X X X X X X X Extracts X X X X
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