Tribunal directs debtor to honor settlement cheque, petitioner may file fresh petition if not complied

The tribunal disposed of the petition by directing the corporate debtor to honor the cheque provided for settlement. Failure to comply would grant the petitioner the liberty to approach the tribunal with a fresh petition. The judgment concluded without any order as to costs, settling the matter in light of the respondent's payment offer and the absence of sufficient evidence supporting the petitioner's claim.

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Issues:
Initiation of Corporate Insolvency Resolution Process (CIRP) under Section 9 of the IBC for default in payment.

Detailed Analysis:
The case involved a petition filed by M/s. Truemix Concrete (India) Private Limited, the operational creditor, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s. Nitesh Housing Developers Private Limited, the corporate debtor, for defaulting on a payment of Rs. 11,15,064.09. The petitioner provided ready mix concrete to the respondent as per purchase orders, and despite issuing a demand notice, the respondent failed to pay the outstanding amount, leading to the initiation of the petition under the Insolvency and Bankruptcy Code, 2016.

The petitioner, engaged in the business of producing and supplying high-quality ready mix concrete, had a total outstanding amount due from the respondent. The respondent, a company involved in real estate development, had defaulted on the payment despite receiving invoices and a demand notice as per the terms and conditions agreed upon. The respondent's failure to pay the debt led to the petitioner seeking relief through the insolvency resolution process.

During the proceedings, both parties expressed willingness to settle the issue. The petitioner insisted on the full claimed amount, while the respondent offered Rs. 8,00,000 as a post-dated cheque for settlement. The legal counsels for both parties presented their arguments, emphasizing the need for a resolution to avoid further litigation.

The judgment referred to relevant legal precedents, highlighting that the Insolvency and Bankruptcy Code is not meant for mere recovery of outstanding amounts but for justified reasons as per the law. It emphasized the necessity of an undisputed debt for initiating the CIRP, as outlined in previous court decisions. The judgment analyzed the conditions required for admitting an application under Section 9 of the Code, emphasizing the need for operational debt exceeding Rs. 1 lakh, documentary evidence of the debt, and the absence of disputes between the parties.

Based on the presented facts and circumstances, including the respondent's willingness to settle the issue by paying a significant amount, the tribunal disposed of the petition by directing the corporate debtor to honor the cheque provided for settlement. Failure to comply would grant the petitioner the liberty to approach the tribunal with a fresh petition. The judgment concluded without any order as to costs, settling the matter in light of the respondent's payment offer and the absence of sufficient evidence supporting the petitioner's claim.

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