2019 (11) TMI 289

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....porate Insolvency Resolution Process (CIRP) against the Corporate Debtor alleging that Corporate Debtor committed default in making payment to the extent of Rs. 22,64,054/- which is inclusive of interest calculated @2% on the delayed payments against goods sold and delivered by Petitioner to the Corporate Debtor, by invoking the provisions of Section 9 of I & B Code (hereinafter called "Code") read with Rule 6 of Insolvency & Bankruptcy (AAA) Rules, 2016. Facts as per the Petition 2. The Petition reveals that the Petitioner supplied the Corporate Debtor with Steel Bars for their construction activity at its project sites. For these supplies various invoices have been raised by the Petitioner. Following is a list of invoices consisting....

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....ode on 15.01.2019 demanding for repayment of unpaid interest of Rs. 22,64,054/-. The Petitioner submits that despite receipt of Demand Notice, the Corporate Debtor neither replied to the said demand notice nor repaid the outstanding dues. 6. The Petitioner filed an Affidavit as required under section 9(3)(b) of the Code stating that they have not received any notice of dispute regarding the unpaid operational debt. Hence this Petition. Contentions of the Corporate Debtor 7. The Corporate Debtor filed its reply and denied all the claims, submissions, allegations made by the Petitioner. The Corporate Debtor submits that the present Petition is not maintainable in law or in fact. Further, the Corporate Debtor contends that the Petitio....

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....4,054/-. The Corporate Debtor further denied receiving any information from the Petitioner with regards to the claim made by them prior to the issue of Demand Notice. It is further submitted that the invoices issued by the Petitioner do not have any interest provision. 11.In Response to the demand notice dated 28th December 2018, the Corporate Debtor vide his letter dated 9th January, 2019 stated that since the final purchase invoice did not have any provision for payment of interest there the interest claimed was incorrect. Thereafter, principal outstanding amount of Rs. 13, 35.952/- was also cleared by the Corporate Debtor vide RTGS. 12.The Corporate Debtor claims to have never agreed to pay interest to the Petitioner. The Corpor....

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....forced before this Tribunal. d. Also, relying on the judgment of the Bombay High Court in S.P. Brothers Vs. Biren Ramesh Kadakia, the Corporate Debtor submits that it is a well settled law that TDS Certificate by themselves are not an acknowledgement of liability. e. Finally, the Corporate Debtor submits that insolvency proceedings cannot be used as a substitute forum for debt recovery, especially when there is a dispute as to the amount of debt. Contentions raised by Petitioner vide Rejoinder and W.S. 14.The Petitioner in his Rejoinder has pointed out that the fact that TDS has been deducted on the interest component is a proof of debt. Further, they have relied on the Corporate Debtor's balance sheet for the year 2015-16, anne....