TaxTMI 
TaxTMI 
2019 (2) TMI 1703
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....appointment of Interim Resolution Professional as prescribed under the Code and Rules thereon. Averments in brief: 2.1 The Petitioner / Financial Creditor represents M/S Reliance Industries Limited as their del-credere agent and entered into an Agreement dated 01.07.2004 with M/S Reliance Industries Limitedn The Petitioner also deals in distribution and supply of polymers and various types of Chemicals and also represents manufacturing companies. The Petitioner was approached by Corporate Debtor for extending credit facility for the products that the Corporate Debtor would procure from Reliance. 2.2 Consequently, an Agreement dated 06.06.2012 was entered into between the Financial Creditor/Petitioner and Corporate Debtor for extending credit facility to Corporate Debtor for purchase of polymers from Reliance. Upon release of payment to Reliance by Financial creditor, the Reliance supplied polymers to Corporate Debtor and in turn Corporate Debtor was obligated to make payment to Financial Creditor along with applicable interest as per the Agreement. 2.3 It is the case of Financial Creditor that it has a discretion to extend a credit period of 20-3....
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.... by Petitioner and do not constitute a financial debt. 3.4 The Corporate Debtor denies the alleged agreement between the Petitioner and Reliance Industries Ltd and contends that Corporate Debtor is not a party to the said agreement and has no relevance and it does not bind Corporate Debtor in any manner. 3.5 It is the case of Corporate Debtor that the Agreement dated 06.06.2012 marked as Annexure-7 to the Petition is for placing orders on Reliance Industries and for payment of interest for credit period but does not relate to any money lent by Petitioner to Corporate Debtor and that there is no financial debt involved in this case. 3.6 It is the case of Corporate Debtor that Petitioner had not provided any evidence to show any payment made by it to Reliance was with the consent of Corporate Debtor and no such confirmation is given by Reliance and that the alleged transactions will not establish Petitioner a Financial Creditor to the Corporate Debtor. 3.7 The Corporate Debtor further avers the alleged transactions would at most amount to sale of goods by Reliance Industries and would not amount to a financial transaction between the Petitioner and....
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....orate Debtor for supply of materials by Reliance to the Corporate Debtor. The Petitioner further submits that Reliance is not in practice to supply the materials unless it receives the payments in advance which the Petitioner was doing as per the terms of Credit Agreement. 4.8. It is also averred, in the reply dated 13.10.2017 to the legal notice issued by Petitioner, the Corporate Debtor admitted that Petitioner is not an Operational Creditor. 4.9. The Petitioner prayed this Tribunal to admit the petition as it is able to establish that Corporate Debtor defaulted in terms of payment. FINDINGS 5. I heard the Counsels for Financial Creditor and Corporate Debtor. The written submissions are filed on both sides. The point raised in the written submissions will be referred to in the course of the order. The Petitioner claimed that it is a Financial Creditor in connection with transactions between M/S Reliance Industries Limited (RIL) and Corporate Debtor. The case of Corporate Debtor that Petitioner is not a Financial Creditor. The contention of Corporate Debtor, Petition under Section 7 of IBC, is not maintainable at the instance of the Petitioner. It is the ca....
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....ement dated 01.07.2004 entered between Petitioner and RIL. It is shown as Annexure-5 at page 157-168 in the typed set filed with the Tribunal. I have seen Annexure-5. This agreement dated 01.07.2004 was entered between M/S RIL with Financial Creditor. M/S RIL is dealing with business of manufacturing and selling Petrochemical products and in the course of its business M/S RIL engaged services of agent on del-credere basis for the sale of its products. The Petitioner is appointed as del-credere agent for M/S RIL. Thus, Financial Creditor is able to establish it was appointed as del-credere agent for M/S RIL. The Agreement was renewed on 29.06.2017 which is marked as Annexure-6 shown at page nos. 170-179. So in the place of previous agreement of agency on del-credere basis a new agreement was executed wef 01.07.2017. The Financial Creditor filed documentary proof establishing it is a del-credere agent of M/S RIL. 10. The next important piece of document is Annexure-7. This agreement was entered between the Financial Creditor and Corporate Debtor dated 06.06.2012. This document is sufficient to conclude Petitioner is a Financial Creditor. There is absolutely no dispute by Corporate....
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....49-156 of the typed set. I have gone through the invoices. Corporate Debtor is shown as buyer and consignee name is shown as Financial Creditor. So in all the tax invoices Financial Creditor is shown as consignee including name of Corporate Debtor as buyer. Tax invoices are also filed. If there is a direct dealing with M/S RIL by the Corporate Debtor then how the Financial Creditor is shown as consignee in the tax invoices. Thus, material is placed by the Financial Creditor that purchase orders are placed through it with M/S RIL and goods were released on payment by Financial Creditor. The Corporate Debtor is contending that the agreement is only for payment of interest on the value of goods received from M/S RIL in case of delayed payment. 13. It is the case of Corporate Debtor that it paid to M/S RIL the amount involved in the invoices. Absolutely there is no proof filed by Corporate Debtor that it paid the monies covered by the invoices. Secondly, it has not filed single invoice if really it had paid money to M/S RIL. On the other hand it is the Financial Creditor who has filed the copies of invoices. It goes to establish that Financial Creditor paid money covered by the invo....