2017 (4) TMI 1156

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....f Rs. 9,10,60,788/- and hence this Petition under section 8 & 9 of the I&BP Code r/w Rule 6 of Insolvency and Bankruptcy (Application to adjudicating authority) Rules, 2016 for initiation of Corporate Insolvency Resolution process. 2. The petitioner says that the corporate Debtor (MCL) and the Petitioner (EPIL) entered into a Memorandum of Understanding on 27.6.2013 wherein MCL had appointed EPIL to carry out civil work, structural fabrication and erection of building and sheds and the erection of technological equipment as part of construction of 0.2 MTPA Steel Melt Shop Complex at Pithampur, Dist. Dhar, Madhya Pradesh. EPIL raised invoices for the works successfully completed by November 30, 2014 which was agreed between the parties an....

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.... to MCL demanding a sum of Rs. 9,10,60,788/- comprising the invoice amount Rs. 6,72,03,097/- and the interest at the rate of 18% p.a. on the dues upto 30.11.2016 which works out to Rs. 2,38,57,691/-, in total Rs. 9,10,60,788/-. The said notice also discloses that the date of invoice, due date, invoice Number, amount outstanding, interest and the total outstanding. 4. The Petition clearly reveals that there is a debt as defined in Section 3(11) of I&B Code 2016, and also there is default in this case within the meaning of Section 3(12) of I&B Code, 2016. The Operational Creditor, on the occurrence of default, issued notice u/s.8(l) to the Corporate Debtor on 28.12.2016 which was received by it on 29.12.2016. The reply of the Corporate Deb....

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.... any, and record of the pendency of the suit or arbitration proceedings filed before the receipt of such notice or invoice in relation to such dispute. (b) the repayment of unpaid operational debt. ......" 6. The Petitioner Counsel submits, to say that dispute is in existence, mere mentioning in the notice that dispute is in existence in relation to impugned debt is not sufficient, the corporate debtor has to prove that the Company already raised such dispute either in court proceeding or Arbitration before receipt of notice u/s 8 of the Code, here no such proceeding being pending before any court of law or in Arbitration proceeding before receipt of the notice supra, the debtor company merely mentioning dispute in the reply to ....

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....inary proceedings pending against him. 10. As to the Petition filed by the Operational Creditor, this Bench, on perusal of this documents filed by the Creditor, it is evident that the Corporate Debtor defaulted in making payments as mentioned above, the disputes raised by the Corporate Debtor are not sustainable, therefore the petition under sections 8 & 9 are taken as complete, accordingly this Bench hereby admits this petition declaring Moratorium with the directions as mentioned below: 1. That this Bench hereby prohibits the institution of suits or continuation of pending suits or proceedings against the corporate debtor including execution of any judgment, decree or order in any court of law, tribunal, arbitration panel or other a....