Application Dismissed: Lack of Evidence and Time-Barred Claim

The Tribunal dismissed the application under Section 9 of The Insolvency and Bankruptcy Code, 2016, as the applicant failed to provide essential documents to substantiate the claim of unpaid debt from the respondent. The absence of crucial evidence, including purchase orders and receipts, raised doubts about the credibility of the claim. Moreover, the application was deemed time-barred due to the last invoice being dated beyond three years from the filing date. The lack of supporting documentation for the claimed interest and irrelevant bank statements led to the conclusion that the application was not maintainable. Company Petition (IB) No. 702 of 2019 was dismissed without costs.

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Issues:
Application under Section 9 of The Insolvency and Bankruptcy Code, 2016 by operational creditor against corporate debtor for unpaid debt.

Analysis:
The applicant, an operational creditor, filed an application under Section 9 of The Insolvency and Bankruptcy Code, 2016, claiming unpaid debt from the respondent, a company engaged in manufacturing special purpose machinery. The applicant alleged supplying SS scrap to the respondent and issued a demand notice under section 8 of the Code. The applicant provided various documents to support the claim, including invoices, demand notice, correspondence, and bank statements.

The Tribunal noted that despite multiple opportunities, the respondent failed to appear or file a reply, and service was deemed complete. The applicant relied on four tax invoices but failed to submit essential documents like purchase orders and receipts to corroborate the claim. The applicant admitted that the debt fell due on a specific date but lacked evidence for a cash payment received from the respondent. The absence of crucial documents raised doubts about the credibility of the claim.

Further, the Tribunal found that the last invoice was dated beyond three years from the application filing date, rendering the application time-barred. The claim for interest at 18% per annum lacked supporting documentation, making it legally untenable. Additionally, the bank statement provided by the applicant was irrelevant to the claim period, further weakening the case.

Consequently, the Tribunal concluded that the application was not maintainable and dismissed Company Petition (IB) No. 702 of 2019 without costs. The judgment highlighted the importance of providing complete and verifiable documentation to support claims in insolvency proceedings to ensure the credibility and legality of the application.

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