TaxTMI 
TaxTMI 
TaxTMI 
2019 (10) TMI 1344
X X X X Extracts X X X X
X X X X Extracts X X X X
....Corporate Debtor. As such both the cases are clubbed together and passed the following orders. These applications were filed by, D.Shanmughasundaram (TIBA/13/KOB/2019) and P. Gandhimathi (TIBA/22/KOB/2019), (Hereinafter referred as 'Operational Creditors') under Section 9 of the Insolvency and Bankruptcy Code, 2016 (for short to be referred hereinafter as the 'Code') for initiating Insolvency Resolution Process against the Corporate Debtor, a company registered under the Companies Act, 1956. The corporate debtor was incorporated on 01.07.1944 under the Companies Act, 1956 in the name of 'TRAVANCORE RUBBER AND TEA COMPANY LTD' with CIN No. U15491KL1944PLC001201. Its registered office is at 12/114 Palace Road, Pattom, ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....00,000 (Rupees Eighty-two lakhs only) was advanced on various dates from 29.01.2016 to 22.02.2016 from the applicant's bank account maintained with the Karur Vysya Bank, Namakkal West Branch to the Corporate Debtors account. * In TIBA/22/KOB/2019, Rs. 35,00,000 (Rupees Thirty-Five Lakhs Only) was advanced on 03.02.2016 and 22.02.2016 from the applicant's bank account maintained with the Karur Vysya Bank, Namakkal West Branch to the Corporate Debtors account. 5. Thereafter, the goods of 100 tons of Dry clove was not received by the operational creditors from the Corporate Debtor and sustained losses. 6. The amounts claimed to be in default including the interest calculated till 08.02.2019 in TIBA/13/KOB/2019 and TIBA/22/KOB/2019 ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....l or otherwise, between the operational creditor and the corporate debtor. The corporate debtor further denied the oral contract with the operational creditor. 10. The counsel submitted that the company has a proper system in place for all its transactions and all transactions are properly documented. The plea raised by the operational creditors that 'the amount was advanced based on trust and oral contract' was completely denied. The corporate debtor admitted that they have entered into a contract dated 29.01.2016 with Mr. T. Mathiyazhagan (Licencee) whereby he was granted a licence/ permission for a period of 29.01.2016 to 31.03.2016 to collect only matured pepper and clove from company's Ambanaad Estate, Kaithuritty P.O., Ko....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tract for harvesting clove and pepper and the Licencee along with the complainant therein approached the operational creditors for financing the Licencee to pay the contract consideration. 14. It was further submitted that the document submitted as complaint filed before the Thiruvananthapuram Police Station, is invalid, as it is understood that the complaint was closed as wild allegations of the alleged operational creditor, lacking substance. Rejoinder filed by the petitioner 15. The applicants further denied the allegations in the counter and stated as the corporate debtor has received a sum of Rs. 85,00,000 and Rs. 35,00,000 in TIBA/13/KOB/2019 and TIBA/22/KOB/2019 respectively, from the applicants which fact is clearly reflected in ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....l perusal of the documents it is noticed that the foremost objection of the Corporate Debtor regarding 'Maintainability' of this application is found to be in order as there is no legal relationship exists between the parties, or any agreement executed in-between. Merely relying on Oral agreement and ordering CIRP will defeat the very purpose of the Code. Given the severity of the consequences that follow on initiation of insolvency proceedings against a company is to be appreciated and understood fully. It is also extremely important to safeguard against the exploitative use of the Code as a debt recovery mechanism and abuse of the process. 19. To arrive at the above decision, we rely on the Hon'ble Supreme Court judgement in ....