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TMI Blog2019 (4) TMI 2168X X X X Extracts X X X X X X X X Extracts X X X X ..... its liability towards the Petitioner. The Petition is filed strictly in accordance with law and also suggested a qualified Resolution professional namely Mr. Shivadutt Bannanje with Registration No. IBBI/IPA-002/IP-N00266/2017-18/10779 to appoint as IRP. Therefore, the said RP is provisionally qualified to be appointed as IRP. Hence, this is a fit case to admit by initiating CIRP respect of Corporate Debtor with other consequential orders. Conclusion - The material documents filed by the petitioner clearly established that the Respondent failed to pay outstanding amount in respect of payment for supply of goods. Petition admitted - CIRP initiated - IRP was appointed - moratorium declared. - Hon ble Shri Rajeswara Rao Vittanala, Member (Jud ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dred and Eighty Only). 3) The Petitioner is engaged in the distribution marketing of steel and non-ferrous metals, including stocking and supplying of TATA Steel. The Corporate Debtor is a Company engaged in manufacture of steel and allied products. It is one of the Companies, which are part of the Bhuwalka Group of Companies. 4) The Petitioner and Corporate Debtor have had a business relationship wherein the Petitioner has been supplying various steel and allied materials to the Corporate Debtor from time to time, on basis of purchase orders placed by the Corporate Debtor, and raising invoices upon the Corporate Debtor for the material supplied. 5) During the years 2014-15, the Petitioner duly supplied the Materials ordered by the Corporat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rule 5 of the I B (AAA) Rules, 2016 was issued by Petitioner to the Corporate Debtor demanding payment of Rs.10,99,73,887.54/- the principal sum in default. The Corporate Debtor issued a response dated 01.08.2017, wherein it raised some untenable technical objections but failed to show that there was any existing dispute regarding the amounts payable, nor was it able to demonstrate that the outstanding had been paid to the Petitioner. 3. The Respondent/Corporate Debtor has filed Statement of Reply dated 27.12.2018 by inter alia contending as follows: 1) The Respondent/Corporate Debtor, M/s. Bhuwalka Steel Industries Limited, is a Company incorporated under the provisions of the Companies Act, 1956. The Respondent is a reputed Company in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assets (NPA). The Respondent Company is, therefore, presently, in a state of insolvency. 5) Insofar as the dues of the Petitioner/Operational Creditor Company are concerned, the Petitioner has previously sought to reconcile the exact amounts due, owing to issues relating to the quality of the supply. However, unfortunately, the Respondent Company is not in a position to repay any amounts whatsoever to the Petitioner Company, much less the amounts claimed by the Petitioner Company (including interest). 6) Given its insolvent financial Conditions, the respondent Company for bona fide reasons, is unable to discharge its liabilities towards various entities including the Operational Creditor herein. Therefore, the Respondent Company is able and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ner to the Respondent. As stated supra, the Respondent has also admitted its liability towards the Petitioner. The Petition is filed strictly in accordance with law and also suggested a qualified Resolution professional namely Mr. Shivadutt Bannanje with Registration No. IBBI/IPA-002/IP-N00266/2017-18/10779 to appoint as IRP. Therefore, we are of prima facie view that the said RP is provisionally qualified to be appointed as IRP. Hence, we are of the considered opinion that it is fit case to admit by initiating CIRP respect of Corporate Debtor with other consequential orders. 8. In view of the above facts and circumstances of the case, and by exercising powers conferred on this Adjudicating Authority, U/s 9(5)(i) and other extant provisions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r suspended or interrupted during moratorium period; f. the provisions of sub-section (1) shall not apply to such transactions as may be notified by the Central Government g The order of moratorium shall have effect from the date of such order till the completion of the Corporate Insolvency Resolution Process; 4) The IRP should follow all extant provisions of IBC, 2016 and the rules including fees rules as framed by IBBIL The IRP is hereby directed to file progress reports to the Tribunal from time to time. 5) The Board of Directors and all the staff of the Corporate Debtor are hereby directed to extend full co-operation to the IRP, in carrying out her functions as such, under the Code and Rules made by IBBI. 6) Post the case for report of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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