9911796707
TMI Blog2023 (1) TMI 1278X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 5(24)(h) of IBC would show, firstly, that it relates to the Corporate Debtor and not to the Operational Creditor and secondly the Appellant was to lead evidence that the Director, Partner or Manager was accustomed to act on the directions or instructions of the said IP. Therefore, Section 5(24)(h) of the Code is not at all applicable to the facts and circumstances of the present case and thus the arguments raised in this regard, is hereby rejected - the provision is not applicable because the dispute is between two corporate entities and not in respect of the individuals. Whether an application under section 9 of the Code cannot proceed in view of fact that the principal amount has already been paid and only the component of intere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st the order dated 11.05.2022, passed by the Adjudicating Authority (National Company Law Tribunal, Ahmedabad Bench, Court -I), by which an application bearing No. CP(IB) 249 of 2020 filed by Westin Resins and Polymers Pvt. Ltd. (Operational Creditor), under Section 9 of the Insolvency and Bankruptcy Code, 2016 (in short Code ), has been allowed and Corporate Insolvency Resolution Process (CIRP) proceedings against Balaji Fiber Reinforce Pvt. Ltd. (Corporate Debtor), has been admitted. 2. The facts in brief are that the Respondent initiated proceedings in terms of Section 8 of the Code by issuance of a Demand Notice upon the Appellant of an amount of Rs.2,92,54,415/- towards the principal and interest. The said Demand Notic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ount of interest is still due which is yet to be paid by the Appellant. The issue which has been raised for our consideration in this appeal as to whether the IRP who had served the notice under Section 8 of the Code is a related party in terms of Section 5(24)(h) of the Code? In order to answer this question, it would be relevant to refer to Section 5(24)(h) of the Code which read thus: Section 5(24(h) - any person on whose advice, directions or instructions, a director, partner or manager of the corporate debtor is accustomed to act 6. A close scrutiny of the aforesaid provision would show, firstly, that it relates to the Corporate Debtor and not to the Operational Creditor and secondly the Appellant was to lead evidence that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of the Appellant which was noticed by this Court at the time of preliminary hearing, is reproduced as under: 02.06.2022: Learned Counsel for the Appellant submits that after the passing of the Order on 11th May, 2022 admitting the Section 9 Application, the Appellant has made payment of Rs. 1,95,98,791/- in the month of May, 2022 itself. Learned Counsel for the Appellant submits that the principal has been paid only little amount regarding the Interest is due and Appellant is hopeful that the issues shall be settled with the Operational Creditor in a short period. 2. Learned Counsel for the Respondent is also present. He may obtain instructions. Let the Reply be filed by the Respondents within three weeks. Rejoinder, if any, ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
