TaxTMI 
TaxTMI 
2019 (3) TMI 1520
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....Operational Creditor against the Corporate Debtor stating that the Corporate Debtor defaulted in making payment of Rs.67,29,188/-, given the same, this Company Petition is filed for initiation of Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor. 2. The case of this Operational Creditor is that the Corporate Debtor approached the Operational Creditor for the purchase of C.R. coils. The Operational Creditor supplied various materials and was dealing with the Corporate Debtor for the past four years. The Operational Creditor has supplied goods to the Corporate Debtor and has timely raised invoices upon the Corporate Debtor. However the payment against the two of the invoices, by way of which the Operational Credit....
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....y and VAT setoff claimed by the Corporate Debtor. The year wise bifurcation for the amount of MODVAT and VAT Set-off claimed by the Corporate Debtor in respect of goods supplied by the Operational Creditor is as under: Year Excise (Rs.) VAT (Rs.) 2013-2014 10,07,386 6,03,914 2014-2015 16,79,290 11,40,710 2015-2016 1,26,893 57,102 Total 28,13,569 18,01,726 4. The Operational Creditor issued a demand notice dated 6thMarch 2018 under Section 8 of Insolvency & Bankruptcy Code, 2016. After that, the Corporate Debtor replied to the Demand notice by a letter undated which was received by the Operational Creditor on 17thMarch 2018. In the said reply, the Corporate Debtor has not denied the amount clai....
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....therwise complete, the adjudicating authority must reject the application under Section 9(5)(ii)(d) if notice of dispute has been received by the operational creditor or there is a record of dispute in the information utility. It is clear that such notice must bring to the notice of the operational creditor the "existence" of a dispute or the fact that a suit or arbitration proceeding relating to a dispute is pending between the parties. Therefore, all that the adjudicating authority is to see at this stage is whether there is a plausible contention which requires further investigation and that the "dispute" is not a patently feeble legal argument or an assertion of fact unsupported by evidence. It is important to separate the grain from th....
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....certain whether there is a default of the operational debt of Rs.1,00,000/- or more to be paid. It is evident from the fact that the default of the operational debt is more than Rs.1,00,000/-. Therefore, the plea taken by the Corporate Debtor in respect of VAT is not sustainable. The dispute about non depositing of the VAT amount after its collection is a different issue,but this issue is not covered in the definition of existing dispute. However the issue of VAT has been raised only after receiving the demand notice, which shows that issue of VAT has been raised for creating the defence. 9. Given the above facts, that the Demand notice demanding payment was served upon the Corporate Debtor, after that, the Corporate Debtor had filed rep....
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....transferring, encumbering, alienating or disposing of by the corporate debtor any of its assets or any legal right or beneficial interest therein; (c) any action to foreclose, recover or enforce any security interest created by the corporate debtor in respect of its property including any action under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002; (d) the recovery of any property by an owner or lessor where such property is occupied by or in the possession of the corporate debtor. (ii) The supply of essential goods or services to the corporate debtor, if continuing, shall not be terminated or suspended or interrupted during moratorium period. (iii) The provisions o....