TaxTMI 
TaxTMI 
2020 (3) TMI 156
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....to Adjudicating Authority) Rules, 2016 (for brevity 'the Rules') by M/s. Devi Industrial Engineering, a partnership firm (for brevity 'Applicant'), through its partner Mr. Samarth Khurana, with a prayer to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s Chandralekha Constructions Pvt. Ltd. (for brevity 'Respondent'). 2. The Applicant, namely M/s Devi Industrial Engineers is a Small Scale Unit as defined under the Micro, Small & Medium Enterprises Development Act, 2006, with PAN no. AAAFD3205C, having its registered office at A-295, Okhla Industrial Area, Phase-1, New Delhi-110020. 3. The Respondent, namely M/s Chandralekha Constructions Private Limited, is a company incorporated on 21.09....
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....iled to pay the amount due, i.e., Rs. 11,93,375/-(Rupees Eleven Lakhs Ninety Three Thousand Three Hundred Seventy Five), as on 01.11.2018. 6. In spite of various requests made and reminders sent by the Applicant, the respondent did not reply. 7. On failure to pay the outstanding dues by the Respondent, the applicant sent a demand notice dated 01.11.2018 under Section 8 of the Insolvency and Bankruptcy Code, 2016 to the respondent asking them to make the entire payment of Rs. 11,93,375/- (Rupees Eleven Lakhs Ninety Three Thousand Three Hundred Seventy Five), along with interest, as per the invoices, within 10 days from receipt of the notice, failing which the applicant shall initiate the Corporate Insolvency Resolution process against ....
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....e were frequent breakdown of the pump during the operation leading to abrupt stopping of the casting process, which took days to mobilize the team thereby causing interruptions and loss of work hours of hired labour at the site. 13. The respondent, further states that, there existed a dispute prior to issuance of the demand notice under section 8 of the I & B Code, 2016 and to resolve the same the applicant has sought the intervention of the Construction Equipment Rental Forum (CERA), seeking conciliation and mediation to resolve the existing dispute vide an email dated 09.01.2018, which was acknowledged by the rental forum (CERA) vide its email dated 09.01.2018, with an assurance of looking into the same. Pursuant to this the respondent....
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....regarding the alleged mala fide acts of the applicant nor any correspondence is placed on record with respect to issuing fake/ bogus bills. Once the debt shown as due, it is for respondent to prove that there are no outstanding dues to be paid to the applicant. There has been much cloud in the submission of the respondent. Therefore, without any specific details of material particulars or evidence the fact of existence of a dispute cannot be sustained. 17. In Innoventive Industries Ltd. v. ICICI Bank Ltd. [2017] 84 taxmann.com 320/143 SCL 625 the Hon'ble Supreme Court held that pre-existing dispute is the dispute raised before demand notice or invoices was received by the 'Corporate Debtor'. Any subsequent dispute raised whil....
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....r attention that M/s Chandralekha Constructions Pvt. Ltd. and M/s Devi Industrial Engineers has come to settlement over payment dues, we would like to request you to release M/s Devi Industrial Engineers payment within 4 days delays of payment has already caused our member financial and mental harassment". Hence, it clearly indicates that the dispute was settled and the respondent has not challenged or taken any other steps against the decision of CERA, albeit a hypothetical or illusory dispute has been raised by the 'Corporate Debtor' and the same appears to be a moonshine defense. 19. The applicant has attached the copy of Bank statements issued by Standard Charted Bank Ltd. in compliance with the requirement of Section 9(3)(c)....