TaxTMI 
TaxTMI 
2020 (9) TMI 508
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....king to set in motion the Corporate Insolvency Resolution Process (CIRP) against Adhiraj Constructions Private Limited(hereinafter called "Corporate Debtor") alleging that Corporate Debtor committed default in making payment of Rs. 20,34,39,283/-inclusive of interest at the rate of 12% per annum on the delay in paymentby invoking the provisions of Section 8 and 9 of the Insolvency & Bankruptcy Code (hereinafter called "Code") read with Rule 5 and 6 of Insolvency & Bankruptcy (Application to Adjudicating Authority) Rules, 2016.The Petition is filed on 10.10.2019 for initiating Corporate Insolvency ResolutionProcess (CIRP). 2. The Petition reveals that the Petitioneralong with other companies participated in the tender process advertised b....
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....eply dated 23.08.2019 to the said notice to which the Petitioner also replied on 16.09.2019. Then, the Petitioner sent a new demand notice dated 21.09.2019to the Corporate Debtor in Form 3 under Section 8 of the I&B Code, 2016 demanding asum ofRs. 20,34,39,283/- including interest calculated at the rate of 12% per annum on the delay in payment to which the Corporate Debtor failed to reply. 6. The Corporate Debtor in its reply to the Petition raised the following contentions: a. It was submitted that the Petitioner has falsely contended that the Corporate Debtor did not reply to the demand notice dated 21.09.2019. The Corporate Debtor replied to the said notice on 02.10.2019 and the Petitioner had received the Corporate Debtor's ....
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....n-crystallized demand or a claim for damages/ compensation is not a 'debt' until and unless the claim is duly adjudicated upon by a competent court/authority and hence, the claim by the Petitioner do not fall within the definition of an 'operational debt' under Section 5 (21) of the Code. d. It was submitted that the Petitioner is required to furnish an affidavit to the effect that no notice relating to a dispute of an unpaid operational debt has been given by the Corporate Debtor as per Section 9(3)(b) of the Code. But, the Petitioner, in the present case, has failed to file any affidavit to state that the Corporate debtor has not given any notice disputing the operational debt. e. It was submitted that the Petitioner's w....
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.... site execution team members appointed by the Petitioner were thoroughly incompetent and there were also frequent changes to the Petitioner's execution team and project manager. These problems were highlighted in the Corporate Debtor's emails dated 24.11.2016 and 01.12.2016. h. It was submitted that the work at site was also stopped on several occasions due to labor strikes by the Petitioner's labourers on account of non-payment of salaries and food issues. Also,the Petitioner remained in breach of its obligations and failed to complete the project in accordance with the Contract. The Corporate Debtor addressed several emails between 04.01.2017 and 27.10.2017 for the same. i. It was submitted that the Petitioner failed to ....
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....itted by the Petitioner and disputed the claim and specifically stated that all payments made previously on the basis of signed joined measurement records andthe claim raised under RA Bill no. 4 do not correspond to the actual work carried out. The Petitioner has raised RA Bill no. 4 after the final bill was closed and final payment was made.The Corporate Debtor vide email dated 10.06.2019 sought for certified documents to support the claim from the Petitioner. d. All the above emails clearly demonstrate that the claim of the Petitioner is not a debt and does not demonstrate as the debt under Section 5(21) of the Code. The Corporate Debtor has raised disputes regarding quality of the Petitioner's work, the bills raised by the Petit....