TaxTMI 
TaxTMI 
2019 (9) TMI 1023
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....l Member. - C.P(IB)No. 227/BB/2018 is filed by M/s. Om Industries Corporation, (Petitioner/Operational Creditor), u/s. 9 of the Insolvency and Bankruptcy Code, 2016, R/w Rule 6 of the Insolvency and Bankruptcy (AAA) Rules, 2016, by inter alia seeking to initiate the Corporate Insolvency Resolution Process (CIRP) in respect of M/s. Hajee A P Bava & Company Constructions Pvt. Ltd. (Respondent/Corporate Debtor), on the ground that Corporate Debtor failed to pay an outstanding amount of Rs. 66,87,540/- (Rupees Sixty Six Lakhs Eight Seven Thousand Five Hundred Forty Only) as on 20.09.2018. 2. Brief facts of the case as mentioned in the Company Petition are as follows: a. M/s. Hajee A.P. Bava & Company Constructions Pvt. Ltd., (....
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....2018 from the Corporate Debtor and the Operational Creditor stated that the Corporate Debtor: i. Has not denied the claim of the Operational Creditor of Rs. 66,87,540/-; and ii. Has not paid the claimed amount; and iii. Has not notified any dispute between the Corporate Debtor and the operational Creditor or of any arbitration proceedings already going on between the parties relating to the debt claimed. Further, the reply dated 8th October, 2018 stated that they are organising funds for repayment of dues and asked for 60 days time. f. That after expiry of 10 days of statutory notice from the date of receipt of Demand Notice, the Operational Creditor filed a Petition....
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....g of this Petition by the Operational Creditor under the Insolvency & Bankruptcy Code has resulted in great hardship to the Corporate Debtor. 4. The Corporate Debtor has further submitted that he has faced several issues with the quality of goods supplied by the Operational Creditor and the same has been intimated to the Operational Creditor on several occasions. Corporate Debtor has also submitted that the Petition filed by the Operational Creditor under I& B Code, 2016 is time barred, because as per the Petition the default in payment has occurred on 20.08.2016. 5. The statement of objections further states that the Corporate Debtor has expressed their readiness to settle the sum of Rs. 49,08,042/- as full and final settlement of th....
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....Ltd. v. Equipment Conductors & Cables Ltd. (CA No. 9597 of 2018) dated 23rd October, 2018, (2018) 147 CLA 112 (SC), Supreme Court of India, it is, inter alia held that existence of undisputed debt is sine qua non of initiating CIRP. As per para 25 of judgment in Mobilox Innovations (P.) Ltd. (supra), it is stated that Adjudicating Authority, while examining an application filed under Section 9 of Code, will have to determine: i. Whether there is an 'operational debt' as defined exceeding Rs. 1 Lakh? ii. Whether documentary evidence furnished with the application shows that the aforesaid debt is due and payable and has not yet been paid? iii. Whether there is existence of dispute between the parti....
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....9 and the Order was reserved by the Hon'ble Court. It was further ordered that if there is any settlement between the parties, the same will be informed jointly by both the parties. I hereby confirm that there has not been any effort by the Respondent to either make payment of the debt and any effort to arrive any settlement. You are requested to kindly communicate to the Hon'ble Court to kindly pronounce the Order, reserved on 08th February, 2019." 10. In the instant petition, in light of the discussion on the proposition of law entailed in the preceding paragraphs and considering the circumstances of the case. We are satisfied that the default in question has occurred, there is no existence of dispute, and the petition filed u....
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.... interest created by the corporate debtor in respect of its property including any action under Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002; the recovery of any property by an owner or lessor where such property is occupied by or in the possession of the corporate debtor. iii. That the supply of essential goods or services to the corporate debtors, if continuing, shall not be terminated or suspended or interrupted during moratorium period. iv. That the provisions of sub-section (1) of Section 14 shall not apply to such transactions as may be notified by the Central Government in consultation with any financial sector regulator. v. That the ....