TaxTMI 
TaxTMI 
2020 (8) TMI 791
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....he Appellant, Smt. Andal Bonumalla Promotor and Ex-executive Director of the Corporate Debtor (Respondent No. 2) filed this Appeal under Section 61 of Insolvency and Bankruptcy Code (In Short I&B Code) against the order dated 03.06.2019 passed by Learned Adjudicating Authority (National Company Law Tribunal) Hyderabad Bench, Hyderabad, in CP(IB)-334/09/HDB/2019. Whereby admitted the Application, filed by the Respondent No. 1 under Section 9 of I&B Code and initiated Corporate Insolvency Resolution Process (In Short 'CIRP') against the Respondent No. 2. 2. Brief facts of this case are that Respondent NO. 1 (referred as Operational Creditor) is in business of Export and Import of Commodities. The Operational Creditor has entered into Sale ....
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....cted for initiation of 'CIRP'. Being aggrieved with this order, the Promoter and Ex-executive director of Corporate Debtor has filed this Appeal. 5. Learned Counsel for the Appellant submits that Section 8(1) of I&B Code provided that on occurrence of a default the Operational Creditor deliver a demand notice to the Corporate Debtor in Form No. 3 or in Form No. 4 as prescribed under the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016. The Service of such demand notice is precondition for filing an Application under Section 9 of I&B Code. The demand notice is not in a prescribed format, hence, the Application under Section 9 of I&B Code could not have been admitted. For this purpose, he placed reliance on the....
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....n it was held that advance given for supply of goods or services is not an Operational Debt. The same view is taken by this Appellate Tribunal in the case of Company Appeal (AT) (Ins) No. 545 & 546 of 2018 in Kavita Anil Taneja Vs. ISMT Ltd. decided on 24.01.2019. Company Appeal (AT) (Ins) No. 223 of 2019 Roma Infrastructure India Pvt. Ltd. Vs. A.S. Iron & Steel Pvt. Ltd. decided on 22.04.2019, Company Appeal (AT) (Ins) No.1454 of 2019 Mironda Trade & Commerce Pvt. Ltd. Vs. Sai Laxmi Tulasi Ferros Pvt. Ltd. decided on 16.12.2019. 7. On the other hand, Learned Counsel for the Respondent No. 1 (Operational Creditor) submits that the notice under Section 8(1) of I&B Code is not prescribed in format, this ground has not been taken before the....
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....lication to Adjudicating Authority) Rules, 2016? (b) Whether an advance amount for supply of goods can be considered as an Operational Debt under Section 5(20) of the I&B Code? 11. So far as, first issue is concerned we have gone through the demand notice dated 07.03.2018. There are four Annexures with the demand notice (A) a copy of Agreement dated 04.01.2017, (B) a copy of invoice dated 08.02.2017, (C) a copy of Bank Statement, (D) a copy of particulars of claim. The Corporate Debtor has not filed the copy of Annexures to the demand notice and according to the Operational Creditor annexure (D) copy of particulars of claim is a notice in prescribed format. Therefore, we are unable to appreciate the objection raised by the Appel....
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....onal Debt'. In the present case, it is clear from the work order that the amount of Rs. 2,60,000,00/- was advanced by the Respondent 'M/s. ISMT Ltd. to the 'Corporate Debtor' for supply of 10,000 Metric Tons of Indonesian Thermal Coal. From the aforesaid fact, we find that the Respondent had not supplied any goods nor provided any services and, therefore, it does not come within the meaning of Operational Creditor" We have taken the same view in the case of Roma Infrastructure India Pvt. Ltd. (Supra)and held that Roma Infrastructure India Pvt. Ltd. has not supplied the goods nor provided any services to the Respondent A.S. Iron and Steel (I) Pvt. Ltd. It advanced payment to Respondent (Operational Creditor) for supply of goods cannot be ....