Operational creditor's petition dismissed under Insolvency Code due to invalid documents and non-maintainability.

The petition under Section 9 of The Insolvency and Bankruptcy Code, 2016, filed by the operational creditor against the private limited company for non-payment of dues was dismissed due to the invalidity of the power of attorney and lack of essential documents. The respondent's partial payment and failure to clear the outstanding debt led to a demand for interest, but the petition was deemed not maintainable. The dismissal did not preclude the petitioner from pursuing other legal avenues to enforce the claim.

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Issues:
Claim under Section 9 of The Insolvency and Bankruptcy Code, 2016; Validity of Power of Attorney; Maintainability of the Petition.

Claim under Section 9 of The Insolvency and Bankruptcy Code, 2016:
The petitioner, an operational creditor, filed a petition under Section 9 of The Insolvency and Bankruptcy Code, 2016, against the respondent, a private limited company, for non-payment of dues related to the supply of UPVC windows and other products. The petitioner claimed that despite repeated follow-ups and demand notices, the respondent failed to clear the outstanding debt of Rs. 5,16,648.64. The respondent made a partial payment of Rs. 10,000, but the balance remained unpaid. The petitioner further demanded interest on the outstanding amount, totaling Rs. 7,55,257.31. The petitioner supported its claim with documents like computation of dues, bank statements, general affidavit, quotation, invoice, and demand notice.

Validity of Power of Attorney:
The Adjudicating Authority noted that the petition was signed by a special power of attorney holder of the applicant partnership firm. However, upon examination, it was found that the special power of attorney was not signed by the power of attorney holder as required by the Power of Attorney Act, 1882. The document lacked the signature of the attorney and did not have the agent's photograph affixed, rendering it legally invalid. The judgment referenced the types of power of attorney, distinguishing between general and specific power of attorney, and highlighted the essential components of a valid power of attorney deed.

Maintainability of the Petition:
The Adjudicating Authority determined that the petition was not maintainable due to the invalidity of the power of attorney and the lack of essential documents like a copy of the purchase order delivery challan and the partnership firm. As a result, the company petition was dismissed and disposed of without costs. However, the judgment clarified that the dismissal on grounds of maintainability did not prevent the petitioner from seeking recourse through the appropriate forum to enforce its claim against the respondent, emphasizing the importance of adhering to the provisions of the Insolvency and Bankruptcy Code, 2016.

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