TaxTMI 
TaxTMI 
2020 (3) TMI 24
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....to initiate the CIR Process, declare Moratorium and appoint IRP. 2. As per submissions of the Counsel for the Operational Creditor, there have been mutual discussions between the parties on 18.03.2017 wherein scaffolding products were agreed to be rented to the Corporate Debtor. The communication signed by both the parties is placed at page 51 of the typed set filed with the Application that gives detail about the item with size, rate of rent per day, quantity and rate of damages for missing & broken items supplied. The terms and conditions of the hire purchase are annexed with the document which provides details with regard to the delivery and return of the material and monthly hire charges. Para 4 of the terms and conditions provides t....
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....that the closing balance is Rs. 56,59,008.64. An affidavit is also filed to satisfy the requirement of sub-section (3) clause (b) of Section 9 of I&B Code, 2016. It is deposed in the affidavit that there is no pre-existing dispute, as no notice has been received from the Corporate Debtor in relation to the unpaid operational debt. The Operational Creditor had sent notice on 23.04.2019 under the provisions of Section 8 of I&B Code, 2016, copy of which is placed at page 36 of the typed set filed with the Application. The reply given by the Corporate Debtor to the said notice is placed at page 44 of the typed set filed with the Application, wherein the Corporate Debtor has denied the claim of the Operational Creditor. It was further stated tha....
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....s to Rs. 7,14,168/-, out of which the Corporate Debtor has already paid a sum of Rs. 10,50,000/- and the Operational Creditor is liable to refund excess amount of Rs. 3,35,832/- to the Corporate Debtor. It is further averred that on 31.03.2018, the Operational Creditor was requested to remove the scaffolding, as the same was not required by the Corporate Debtor. A verbal request is stated to have been made by the Corporate Debtor to the Operational Creditor for removing of scaffolding. It is further contended by the Corporate Debtor that on several occasions the Operational Creditor was reminded, both telephonically as well as personally, to remove the scaffolding. The Corporate Debtor contends that due to delay in execution of work, the wh....
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....he part of the Corporate Debtor. Based on this, the counsel for the Corporate Debtor prayed to dismiss the Application filed by the Operational Creditor. 6. Counsel for the Operational Creditor has submitted that the material supplied has been used up to 13.03.2018 and thereafter the material is lying with the Corporate Debtor for which the Corporate Debtor is responsible to pay rent, as was agreed. It is further noted that para 1 of the terms and conditions attached with the document, dated 18.03.2017, signed by both the parties provides as follows: "After issue the material, we are not responsible till we receive material back at our godown 9 a.m. to 5 p.m. Sunday being holiday. Hire charges will be calculated from the date of....
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....satisfied that the Corporate Debtor has committed default in making payment of the outstanding debt as claimed by the Operational Creditor. Therefore, Application is admitted and the commencement of the Corporate Insolvency Resolution Process is ordered which ordinarily shall be completed within 180 days, reckoning from the day this order is passed. 8. The moratorium is declared which shall have effect from the date of this Order till the completion of Corporate Insolvency Resolution Process, for the purposes referred to in Section 14 of the I&B Code, 2016. It is ordered to prohibit all of the following, namely: - (a) The institution of suits or continuation of pending suits or proceedings against the corporate debtor including ....