TaxTMI 
TaxTMI 
TaxTMI 
2020 (7) TMI 234
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....ing the operational debt of Rs. 1,45,74,133/-. The Adjudicating Authority rejected the Application on the ground of existence of serious dispute pending between the Appellant and the Respondent and further holding that the same is required proper adjudication. 3. From the perusal of the Application filed before the Adjudicating Authority in requisite Form-5 at Part-4 (page -72 Vol. I) in particulars of the Operational Debt, the amount of debt shown as Rs. 1,10,23,431.38. The cause of the debt shown as the transaction between the Appellant and the Respondent. The contention of the Appellant is that they supplied Natural Oxygen Cylinder, Carbon Dioxide Cylinders and LPG Gas Cylinders against the Purchase Order received by the Appellant from the Corporate Debtor. However, the amount claimed to be defaulted was Rs. 1,45,75,133.33 which includes 12% interest per annum. 4. Learned Counsel for the Appellant contended that the Appellant had earlier issued two Demand Notices on 17-6-2016 and 13-7-2016 on account of non-payment of outstanding dues, however, no reply received from Respondent/Corporate Debtor. It is submitted that the Respondent defaulted in the payment of invoices that were....
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....F are not supplied. 5. That the transactions between M/s Anjani Gas and M/s B.P. Projects Pvt. Ltd. were going on before 2005. Hence without the complete set of documents i.e. copies of invoices, complete ledger of account (from the period 2204 to 2018), and the copies of Annexures C, D and F, it is not possible to give appropriate reply to this letter at this stage" 8. Learned Counsel for the Respondent submitted that in so far as the payment of Rs. 1,10,23,431.38 is concerned, the Respondent had paid Rs. 86,30,000/- and excess amount of Rs. 5,56,889/- during the period of June, 2014 to October, 2016 and the same is not adjusted by the Appellant. However, the Appellant lodged FIR against the Directors of the Respondent Company under Sections 120-B, 406, 420 and 506 of IPC on 7-9-2016 for the act of cheating and not paying the amount of Rs. 1,10,23,403.63 to the Appellant. He submitted that there is serious dispute between the Appellant and Respondent. As stated supra, the Respondent had paid the amount of Rs. 86,30,000/-. 9. Heard learned Counsel appearing for the respective parties. Perused the pleadings and documents filed in their support. The main issue for consideration i....
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....summary procedure fully time bound as specified in the Act. The Adjudicating Authority cannot go into the serious disputes which require adducing of evidence. The Hon'ble Supreme Court in "Mobilox Innovations Private Limited v. Kirusa Software Private Limited" reported in (2018) 1 SCC 353 at paragraphs 33 and 51 held: "33. The scheme under sections 8 and 9 of the Code, appears to be that an operational creditor, as defined, may, on the occurrence of a default (i.e. on non-payment of a debt, any part whereof has become due and payable and has not been repaid), deliver a demand notice of such unpaid operational debt or deliver the copy of an invoice demanding payment of such amount to the corporate debtor in the form set out in Rule 5 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 read with Form 3 or 4, as the case may be [Section 8(1)]. Within a period of 10 days of the receipt of such demand notice or copy of invoice, the corporate debtor must bring to the notice of the operational creditor the existence of a dispute and/or the record of the pendency of a suit or arbitration proceeding filed before the receipt of such notice or invoice in....
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....there is record of dispute in the information utility; and (e) there is no disciplinary proceeding pending against any resolution professional proposed under sub-section (4), if any; (ii) Reject the application and communicate such decision to the operational creditor and the corporate debtor, if - (a) The application made under sub-section (2) is incomplete; (b) There has been payment of the unpaid operational debt; (c) The creditor has not delivered the invoice or notice for payment to the corporate debtor; (d) Notice of dispute has been received by the operational creditor or there is a record of dispute in the information utility; or (e) Any disciplinary proceeding is pending against any proposed resolution professional: Provided the Adjudicating Authority, shall before rejecting an application under sub-clause (a) of clause (ii) give a notice to the applicant to rectify the defect in his application within seven days of the date of receipt of such notice from the adjudicating Authority." ... [Emphasis supplied] Sub-Section 5(ii)(d) of Section 9 refers to Notice of dispute has been received by the Operational Creditor or there is a record of dispute in the I....