2020 (12) TMI 34

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....brief facts of the case are as under: - The Operational Creditor is involved in manufacture /supply business of aluminium powder coated grills, round/ square slots, disc valve, perforated grill and allied products. During the course of business, the Corporate Debtor has placed purchase order to the Operational creditor for supply of Aluminium Coated grills and allied products. On the basis of the orders placed, the Operational Creditor supplied the materials and raised invoices. However, the Corporate Debtor failed to make the payments. The following are the invoices in which the outstanding debt due and payable by the Corporate Debtor: - DATE INVOICE NUMBER AMOUNT (Rs.) 13.04.2018 In No.59 10,325 26.04.2018 In No.87 30,975 26.04.2018 In No.88 82,862 11.05.2018 In No.150 27,208 11.05.2018 In No.151 8,638 02.06.2018 In No.220 2,39167 08.06.2018 In No.252 7,222 08.06.2018 In No.253 10,365 08.06.2018 In No.254 32,261 02.07.2018 In No.328 15,548 3. The interest due on the Total Outstanding -Principal Debt on Goods Supplied & Services Rendered calculated at the rate of 24% till 31st of January 2020 is Rs. 2,03,563/-, therefore, the total debt payable o....

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....a dispute, if any or record of the pendency of the suit or arbitration proceedings filed before the receipt of such notice or invoice in relation to such dispute" 8. Before the amendment the adjective "and" was used instead of "or". Therefore, after the amendment the intimation regarding the dispute with respect to the claim alone is sufficient and it is not necessary that proceedings for the resolution of the dispute should be pending in a suit or arbitration proceeding before the receipt of notice. Hence the existence of the dispute alone is the decisive factor with respect to the sustainability or otherwise of the application before this Tribunal. As submitted above, the existence of dispute with respect to the claim and also intimation regarding the payments made to the Operational Creditor has been intimated to the applicant by the Corporate Debtor on receipt of the notice within the statutory period of 10 days. Therefore, the application deserves to be dismissed. They raised a further contention that the entire claim of the Operational Creditor as per this application is for a total amount of Rs. 6,68,134/-. As per the notification of the Ministry of Corporate Affairs dated ....

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....ditor is to grab money illegally from the Corporate Debtor. There is no amount due to the applicant as contended. The allegation of debt is not correct and is denied. The interest calculated is exorbitant and Corporate Debtor is not liable to pay such exorbitant interest to the Applicant. FINDINGS: - 13. I have heard the Learned counsel for both the parties through video conferencing and perused the whole case records including documents and Annexures appended with the case records. The following are the observations of this Bench: - 14. This Tribunal examined the claim of the Operational Creditor in the light of the landmark judgement of Hon'ble Supreme Court in "Innoventive Industries Ltd. v. ICICI Bank and Anr. ─ (2018) 1 SCC 407", to establish any pre-existing dispute in the instant matter. The relevant para is quoted below: "29. The scheme of Section 7 stands in contrast with the scheme under Section 8 where an operational creditor is, on the occurrence of a default, to first deliver a demand notice of the unpaid debt to the operational debtor in the manner provided in Section 8(1) of the Code. Under Section 8(2), the corporate debtor can, within a period of 10 days....

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.... of Corporate Insolvency Resolution Process is admitted against the Corporate Debtor, M/s. ICICLES HVAC Experts Private Limited prohibiting the following: a) having admitted the application, the provisions of moratorium as prescribed under Section 14 of the Code should be operative hereafter with effect from the date of order shall be applicable by prohibiting institution of any suit before a court of law transferring, encumbering, any of the assets of the debtor etc... b) the institution of suits or continuation of pending suits or proceedings against the corporate debtor including execution of any judgment, decree or order in any court of law, tribunal, arbitration panel or other authority; d) any action to foreclose, recover or enforce any security interest created by the corporate debtor in respect of its property including any action under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002; e) the recovery of any property by an owner or lessor where such property is occupied by or in possession of the corporate debtor. II. It is further made clear that: a. The supply of essential goods or services to the corpora....