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TMI Blog2021 (9) TMI 1344X X X X Extracts X X X X X X X X Extracts X X X X ..... ng Authority to properly adjudicate the Application on hand and the present Application filed by the Operational Creditor is bereft of all these details and hence on the said count itself, the present Application is required to be dismissed. Further, the nature of transaction which transpired between the parties would show that at first the Operational Creditor will supply the materials to the Corporate Debtor and the Corporate Debtor would convert the said materials into finished products and in turn supply the same to the Operational Creditor. Thus, in the present case, it is seen that both the Operational Creditor and the Corporate Debtor have been supplying materials mutually exclusive with one and another and in the said circumstances, the Applicant alone cannot be treated as an Operational Creditor in respect of the Corporate Debtor. For a person to qualify as an Operational Creditor he must have supplied the goods or rendered service to the Corporate Debtor, which is not the proposition In the present case and on the other it is the Corporate Debtor who has supplied the service to the Operational Creditor of which it is claimed to be deficient. Thus, it is quite clea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eing claimed by the Operational Creditor as the Operational debt. The date of default is mentioned as 11.12.2017. Part - V of the Application discloses about the details of the documents which have been filed by the Operational Creditor in order to prove the Operational debt , which are as follows; a) List of Invoices dated from 01.05.2017 to 10.12.2017 b) Demand Notice dated 23.05.2019 c) Reply Notice dated 08.06.2019 d) Master Data of Corporate Debtor from MCA 4. The Learned Counsel for the Operational Creditor submitted that the Operational Creditor was engaged in supply of wheel cylinder body castings to the Corporate Debtor and during the course of its business, the Corporate Debtor used to supply end plugs and adaptors to Operational Creditor. Further, it was submitted that the Operational Creditor and the Corporate Debtor used to set off their respective receivables against their respective supplies and pay the balance to each other. Thereafter, it was submitted that during 2015 and 2016, due to the Corporate Debtor s financial crisis, it has requested for extension and flexible terms towards payment for their purchase from the Operational Creditor. However, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt the same into products and supply it to the Operational Creditor. 8. At first it is contended by the Learned Counsel for the Corporate Debtor that, no payment was made to the Operational Creditor as the Operational creditor would detect he cost of the materials supplied and pay the balance to the Corporate Debtor. Secondly, it was submitted that an Understanding Agreement has been entered into between the parties, which is not filed before this Tribunal, however it was submitted that as per the Understanding agreement, the Operational Creditor has to inform the Corporate Debtor before 6 months in advance in case of termination of the business. However, it was submitted that no such intimation prior to termination of business was given by the Operational Creditor to the Corporate Debtor. 9. Thirdly, it was submitted that the issue with respect to quality and delay in delivery was never raised before, and is brought into scene all of a sudden in the application and also it was submitted that the Operational Creditor has never raised any issue with regard to pending payment till the issuance of the Demand Notice dated 23.05.2019. 10. The Counsel for the Corporate Debtor ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 14. Upon perusal of the typed set of documents filed along with the Application, it is seen that the Operational Creditor has only listed out the details of 1110 Nos. of invoices along with the Application, however has failed to enclose the copy of those invoices per se and in the absence of those invoices which sets out the date, the seal of the Operational Creditor and other details, the Application which are filed by the Operational Creditor are required to be treated as incomplete. It is also required to be noted that the Applicant even though in his Application has averred in Part - IV of the Application that as per his Books of accounts that a sum o ₹ 14,41,728/- is balance outstanding, however has miserably failed to placed on record the copy of the said Ledger Account in the typed set filed along with the Application. AIl these documents are least required for this Adjudicating Authority to properly adjudicate the Application on hand and the present Application filed by the Operational Creditor is bereft of all these details and hence on the said count itself, the present Application is required to be dismissed. 15. Further, the nature of transaction which trans ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted, undisputed, secured or unsecured; Sec. 3 (11) debt means a liability or obligation in respect of a claim which is due from any person and includes a financial debt and operational debt; Sec. 3 (12) default means non-payment of debt when whole or any part or instalment of the amount of debt has become due and payable and is not 1[paid] by the debtor or the corporate debtor, as the case may be; Sec. 5 (20) operational creditor means a person to whom an operational debt is owed and includes any person to whom such debt has been legally assigned or transferred; Sec. 5 (21) operational debt means a claim in respect of the provision of goods or services including employment or a debt in respect of the payment of dues arising under any law for the time being in force and payable to the Central Government, any State Government or any local authority; 18. It is required to be noted that for a debt to qualify as an Operational Debt , it has to undergo the following percolation process; (a) The amount in default should fall within the definition of claim as defined under Section 3(6) of IBC, 2016. (b) Such a claim should be capable of being treate ..... X X X X Extracts X X X X X X X X Extracts X X X X
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