Appellate Tribunal Quashes Order, Remits Matter for Further Proceedings

The Appellate Tribunal allowed the appeal, quashed the dismissed order, and remitted the matter back to the Adjudicating Authority for further proceedings. The Adjudicating Authority was directed to admit the Application under Section 9 of IBC unless the parties settled the dues before formal admission orders. The parties were instructed to appear for further proceedings, and the appeal was disposed of with no order as to costs, providing relief to the Appellant against the dismissal based on limitation grounds.

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Issues:
- Appeal against the Impugned Dismissed Order dated 08.12.2020 by the Adjudicating Authority
- Dismissal of Application under Section 9 of IBC by the Adjudicating Authority on grounds of limitation
- Discrepancy in the invoices raised by the Operational Creditor

Analysis:
The Appellant, an Operational Creditor, filed an Application under Section 9 of IBC against the Corporate Debtor claiming outstanding dues of &8377; 59,75,055 for supplying Soya Bean as per commercial arrangement. The Adjudicating Authority dismissed the Application as time-barred since the debt was considered to be beyond the limitation period. The Appellant appealed the decision, arguing that a payment received from the Corporate Debtor on 24.11.2017 was within the limitation period, as evidenced by the Bank Statement. The Appellant also clarified the confusion regarding the Corporate Debtor's name and trade name, showing they were the same entity. The Appeal highlighted that the payment made by the Corporate Debtor was valid and timely, thus challenging the Adjudicating Authority's decision on limitation grounds.

The Adjudicating Authority raised doubts about the invoices, noting a discrepancy in the sequence of the Invoice numbers. However, the Appellant argued that such discrepancies were common due to multiple sales counters and should not raise suspicion. The Appellant provided evidence that the Corporate Debtor received the goods without disputing the invoices. The Appeal contended that the Adjudicating Authority's suspicion on the invoices was unnecessary, especially when the Corporate Debtor did not raise any disputes regarding them. The Appeal successfully refuted the doubts raised by the Adjudicating Authority regarding the invoices.

After considering the arguments and evidence presented by both parties, the Appellate Tribunal allowed the Appeal, quashed the Impugned Order, and remitted the matter back to the Adjudicating Authority for further proceedings. The Adjudicating Authority was directed to admit the Application and make necessary orders on admission unless the parties settled the dues before formal admission orders. The parties were instructed to appear before the Adjudicating Authority on a specified date for further proceedings. The Appeal was disposed of with no order as to costs, granting relief to the Appellant against the dismissal of the Application under Section 9 of IBC.

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