2022 (10) TMI 699

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..... tiate the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor (CD) for the default committed by the CD with regard to the debt that is due to the OC which is to an extent of Rs. 1,49,50,000/- which includes interest at 18% Per Annum. 2. The facts of the case briefly are that: i). The OC issued a work order (WO) to the CD on 15.12.2018 for purchase of carbon steel bright rounds sae, MS beam, Non Alloy Steel Round Bars, MS Channels (goods). The total value of WO was Rs. 2,00,04,742/-. ii). On 28.12.2018, the OC along with purchase order has remitted an advance of Rs. 1 Crore. But the CD failed to supply goods and also has not refunded the advance amount paid by the OC. Hence, this Company Petition seeking to initi .....

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..... e those who supply goods or services to a corporate debtor and exclude those who receive goods or services from the corporate debtor. For reasons which shall follow, we reject this argument. 45: Similarly, in the present case, the phrase "in respect of" in Section 5(21) has to be interpreted in a broad and purposive manner in order to include all those who provide or receive operational services from the corporate debtor, which ultimately lead to an operational debt in the present case, the appellant clearly sought an operational service from the proprietary concern when it contracted with them for the supply of light fittings. Further, when the contract was terminated but the Proprietary Concern nonetheless encashed the cheque for advanc .....

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..... ement forthwith and take necessary steps in furtherance of the CIRP in terms of Sections 13(2), 15, 17, 18 and 20 of Code and Rules made thereunder. iii. Moratorium in respect of the Corporate Debtor is hereby declared in terms of Section 14 of the Code. iv. The Directors, Promoters or any other person(s) associated with the management of Corporate Debtor shall extend all assistance and cooperation to the IRP as stipulated under section 19 of the Code for effectively discharging his functions under the Code. v. The Registry shall communicate the order to the Operational Creditor and the Corporate Debtor forthwith. vi. The Operational Creditor and the Registry shall send the copy of this order to IRP for necessary compliance.
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