TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
When case Id is present, search is done only for this
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Tribunal Admits Insolvency Application, Rejects Corporate Debtor's Claims</h1> <h3>Blue Star Ltd. Versus Heaven Engineers & Contractors (P.) Ltd.</h3> Blue Star Ltd. Versus Heaven Engineers & Contractors (P.) Ltd. - TMI Issues involved:- Application filed under section 9 of Insolvency and Bankruptcy Code, 2016 by Applicant against Corporate Debtor.- Dispute over outstanding payment for air conditioners supplied by Applicant to Corporate Debtor.- Corporate Debtor's contention of substandard quality and overpricing of products.- Allegation of default in payment by Corporate Debtor.- Jurisdiction of the Tribunal to entertain the application.- Assessment of pre-existing dispute raised by Corporate Debtor.- Timeliness of the application.- Appointment of Interim Resolution Professional.- Direction for Operational Creditor to deposit funds with IRP.- Imposition of moratorium on Corporate Debtor.Analysis:1. The Applicant, a private limited company, filed an application under section 9 of the IBC, 2016 seeking initiation of Corporate Insolvency Resolution Process against the Corporate Debtor, also a private limited company. The dispute arose from the non-payment of outstanding invoices for air conditioners supplied by the Applicant to the Corporate Debtor.2. The Applicant contended that despite supplying products as per specifications and terms of purchase orders, the Corporate Debtor failed to make full payment, leading to a total outstanding amount of Rs. 10,15,392/-. The Corporate Debtor disputed the claim, alleging substandard quality and overpricing of the products, and claimed adjustments for unsold machinery and other alleged discrepancies.3. The Tribunal observed that the Corporate Debtor failed to provide evidence supporting its dispute, leading to the conclusion that the default in payment had indeed occurred. The Tribunal found no merit in the Corporate Debtor's contentions, citing the absence of any genuine pre-existing dispute and referencing the 'Mobilox Innovations' case to support its decision.4. The Tribunal determined that the application was not time-barred, as the default occurred on 13-10-2018, and the application was filed on 4-9-2019. Additionally, since the registered office of the Corporate Debtor was in Delhi, the Tribunal had jurisdiction to entertain the application.5. The Tribunal admitted the application, appointed an Interim Resolution Professional, and directed the Operational Creditor to deposit funds to meet expenses related to the resolution process. The imposition of a moratorium on the Corporate Debtor was also ordered, in accordance with the provisions of the IBC, 2016.6. The Tribunal emphasized compliance requirements, including communication of the order to the parties involved, the IRP, IBBI, and ROC for necessary updates and records. The Applicant was instructed to provide a copy of the order to the IRP and ensure compliance with reporting obligations to the Registrar, NCLT.This detailed analysis covers the various issues addressed in the judgment, highlighting the legal and procedural aspects of the case.
TaxTMI 