TaxTMI 
TaxTMI 
2019 (11) TMI 1381
X X X X Extracts X X X X
X X X X Extracts X X X X
....on to the Adjudicating Authority) Rules, 2016, seeking admission of the Petition, initiation of Corporate Insolvency Resolution Process, granting moratorium and appointment of Interim Resolution Professional as prescribed under the Code and Rules thereon. 2. The averments of the petition filed by the Petitioner/ Operational Creditor in brief are: i. M/S. Concept Public Relations India Limited [CNI (for brevity 'CPRIV)/ Operational Creditor is a Company incorporated under the Laws of India is engaged in the business of providing customer services to its clients. M/S. Concept Public Relations India Limited [CNI and M/S. RDP Workstations Private Limited (in brevity 'RD?) / Corporate Debtor had entered into a Public Relations Agency Contract on 01.08.2017 for the purpose of managing the strategic communication. CPRIL was appointed on a monthly retainer fee of Rs. 85,OOO/- plus GST. Accordingly, CPRIL provided the services to RDP and raised the invoices from time to time. An amount of Rs. 7,02,400/-(Rupees Seven Lakhs Two Thousand Four Hundred only) is due from the Corporate Debtor towards services rendered since April, 2018. The invoice details are menti....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... that Operational Creditor had provided the services in full and Operational Creditor never adhered to the terms and conditions of the contract. v It is averred that the activities conducted for one year are only 26, out of 38 assured activities against the contract and e-mail dated 12.07.2017. As on date, the Operational Creditor received an amount of Rs. 8,02, 100/- against the activities conducted and is liable to give clarification and justification of the amount received. vi. It is averred that the Operational Credit has to provide the plan and function according to that. But the Operational Creditor has not provided the plan and lack of co-ordination some important events / deliverables were missed because of the actions/conduct of the Operational Creditor, which was informed to the Operational Creditor by e-mail dt.27.10.2018. The desired rules are not achieved and it was accepted by the Operational Creditor by its e-mail dated 01.11.2018. 4. Affidavit in reply to the Counter filed by the Corporate Debtor, in brief are as follows: i. It is averred that the mutual understanding and long standing relationship between the parties, the Corporate Deb....
X X X X Extracts X X X X
X X X X Extracts X X X X
....act dated 01.08.2017 where under Operational Creditor was engaged for the purpose of managing the strategic communication for the Corporate Debtor. The payment was on retainer basis and was fixed at Rs. 85,000/- + GST to be paid in advance every month. Counsel contended Corporate Debtor made payment initially for some months but thereafter committed default from April, 2018. The Contract called Public Relations Agency Contract dated 01.08.2017 is marked as Exhibit 'D' at page No.28 to 31 of the paper booklet filed by Operational Creditor. The demand notice was issued to the Corporate Debtor who gave replay belatedly on 02.05.2019. The Operational Creditor raised invoices from 02.04.2018 to 01.10.2018. They are shown as Exhibit 'E' (Colly.) at pg. No.32 to 38 of the paper booklet. The Demand Notice dated 05.03.2019 is shown as Exhibit 'F' at pg. Nos.39 to 64. The response / reply given by Corporate Debtor is shown as Exhibit 'H' at Pg.No.68 to 70 of the paper booklet. 7. The Learned Counsel for Operational Creditor would contend that at no point of time prior to Demand Notice, the Corporate Debtor raised any dispute. The Corporate Debtor for the fi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....T for initial months which is evident from the ledger account filed by the Corporate Debtor. Therefore, it cannot be said there is any pre-existing dispute. Thus, Learned Counsel for Operational Creditor would contend that Operational Creditor proved existence of Operational Debt by filing the Invoices and that there is no pre-existing dispute and as such petition is liable to be admitted. 9. On the other hand, Learned Counsel for Corporate Debtor would contend that petition cannot be admitted against Corporate Debtor on the ground that there was a pre-existing dispute. Learned Counsel for Corporate Debtor also filed written submissions. Counsel contended, Operational Creditor failed to render services to the Corporate Debtor in terms of understanding dated 12.07.2017. Therefore, there is a preexisting dispute and petition cannot be admitted. 10. Points raised in the written submissions filed on behalf of Corporate Debtor will be dealt in the course of the Order. 11. We have seen the Contract dated 01.08.2017. The Terms of Contract go to show that Petitioner / Operational Creditor will be paid monthly Retainer fee of Rs. 85,OOO/- + GST as applicable. The fees will be payab....
X X X X Extracts X X X X
X X X X Extracts X X X X
....is evident from the ledger account of the Corporate Debtor maintained by Operational Creditor. The monthly fee along with GST comes to Rs. 1,OO,300/- which is a fixed fee. The same was paid by Corporate Debtor to the Operational Creditor for certain months. The default is from April, 2018 to October, 2018 and there was demand notice issued to the Corporate Debtor. 16. The contention of Corporate Debtor that Operational Creditor is to render certain services which are shown in the letter dated 12.07.2017. This was a proposal which is subject matter of further discussions. It is not as if an agreed contract. It was a mere proposal. It is even not signed by the Operational Creditor. Therefore, it cannot be held as a concluded contract. There is absolutely no dispute with regard to the concluded contract entered into between the parties on 01.08.2017. Parties are bound by this contract. The Operational Creditor is entitled for monthly retainer fee at Rs. 85,OOO/- per month + GST. The question whether there was any pre-existing dispute. The contention of Learned Counsel, the contract is for a period of one year starting from August, 2017 and ending by July, 2018. Counsel contended th....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... or invoice as the case may be. 18. The other contention raised is that there is no provision for the interest. Even the amount covered by interest is excluded, the claim is more than Rs. and therefore petition can be admitted. 19. The Operational Creditor has established that Corporate Debtor committed default of Operational Debt and as such application is liable to be admitted. 20. The Operational Creditor failed to name anyone as Interim Resolution Professional and has requested the Tribunal to appoint one for the Corporate Insolvency Resolution Process. The Insolvency and Bankruptcy Board of India (IBBI) has recommended a panel of Insolvency Professionals for appointment as Insolvency Resolution Professional for the period 1st July 2019 to 31st December, 2019 in compliance with Section 16(3)(a) of the Code in order to avoid delay. Accordingly, this Tribunal appoints Mr. Nukala Sreedhar having Registration No.1BB1/ IPA-OOI/ IP-P00432/2017-2018/ 10755, Mobile No. 9848146369 e-mail id: [email protected] as Interim Resolution Professional. The aforesaid interim resolution professional has no disciplinary proceedings pending against him. He shall file his wri....