TaxTMI 
TaxTMI 
2020 (12) TMI 1175
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....s follows: (1) M/s. Sudha Industrial Chemicals is a sole proprietorship owned by Mr. AB Srivastava and represented by its senior employee Mr. ML Sridhar. The Petitioner is engaged in the business of trading in various cleaning and washing chemicals used in the processing of garments. The concern has been supplying the chemicals to garments industries in Bengaluru. (2) M/s. Orijean Private Limited is a private company limited by shares incorporated with Corporate Identity No. U18201KA2011 PTC060808 under the Companies Act, 1956 on 13.10.2011 having its registered office at the aforesaid address. The Corporate Debtor is running garment washing units with a workforce of around 100 plus employees. (3) The Operational Creditor has been supplying the chemicals to the Corporate Debtor since 2012 at regular intervals and used to receive the payment without much delay. However, from the month of August 2018 there has been a halt in payments despite the regular supply made by the Operational Creditor. (4) It is stated that for the supplies made from October 2014 to August 2018 there are outstanding dues of Rs. 39,09,014/- which includes Principal amount of Rs.....
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....editor. Further, it is stated that the claim of the Operational Creditor pertains to payment of purported invoices raised during the period between 2014 till 2019 and therefore substantial portion of alleged claim is barred by limitation. (2) It is submitted that the Petitioner has filed the present application with the sole intention to arm twist the Corporate Debtor to make payments which are not legitimately due and liable to be made to the Operational Creditor and to recover the alleged debt which is time barred and not with the intention to revive the Corporate Debtor, which is the objective of the Code. (3) It is submitted that Central Government vide notification dated 24.03.2020 bearing No.S.O.1205 (E) F.No.30/9/2020-lNSOLVENCY has increased the minimum threshold to Rs. 1,00,00,000/- (Rupees One Crore only) for initiating a CIRP. In the present case, the Operational Creditor has alleged that a sum of Rs. 23,06,422/- along with interest as due from the Corporate Debtor, which is well below the minimum threshold limit. (4) It is submitted that representatives of Operational Creditor approached the Corporate Debtor and represented that they ....
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....r to issuance of demand notice dated 27.12.2019. Further, the Respondent also issued detailed reply dated 06.02.2020 to the Demand Notice refuting the Petitioner's claim. Copy to Reply to Demand Notice dated 06.02.2020 is annexed to the Statement of Objections. (10) In support of its contentions, the Corporate Debtor relied upon the judgments of Hon'ble Supreme Court in Transmission Corporation of Andhra Pradesh Limited v. Equipment Conductors and Cables Limited (2019) 12 SCC 697; Mobilox Innovations Private Limited v. Kirusa Software Private Limited (2018) 1 SCC 353 and Innoventive Industries Limited v. ICICI Bank and another reported in (2018) 1 SCC 407 stating that the existence of an undisputed debt is a sine qua non for initiating Corporate Insolvency Resolution Process. Further, provisions of the Code must not be invoked for recovery of outstanding amount and the Adjudicating Authority is not intended to substitute a recovery forum. (11) It is also contended that the Operational Creditor is seeking to recover amounts allegedly due from Corporate Debtor for the period 27.10.2014 to 10.08.2019. The present petition is filed on 06.02.2020. The alleged dues under the ....
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....06.02.2020 and hence is not affected by the same as a statute is presumed to be prospective unless it is specified to be retrospective. (6) It is stated that the Corporate Debtor has submitted no evidence other than oral averments to evidence that the invoices have been paid in full or any evidence that the amount payable is disputed nor indicated that the dispute has been communicated to the OC. Further, they submitted false averments to claim damages to his products from the chemicals supplied by the Operational Creditor. (7) The Corporate Debtor is not able to identify any particular order or lot which has been damaged by the chemicals supplied by the Operational Creditor nor its value nor number of pieces damaged in it. In case of any damages, such 'samples' are written off under normal industry and accounting practices. There has never been any correspondence with the Corporate Debtor on any quality issues identified in the supplies made by the Operational Creditor. (8) It is stated that the Operational Creditor is no way concerned with the return of products of the Corporate Debtor and was never intimated of any such return of any product....
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....(2018) 147 CLA 112 (SC)] Hon'ble Supreme Court of India has inter alia held that existence of undisputed debt is sine qua non of initiating CIRP. As per para 34 of the judgement, it is stated that the Adjudicating Authority, while examining an application filed under Section 9 of Code, will have to determine a) whether there is an 'operational debt' as defined exceeding Rs. 1 Lakh? b) Whether documentary evidence furnished with the application shows that the aforesaid debt is due and payable and has not yet been paid? and c) Whether there is existence of dispute between the parties or the record of the pendency of a suit or arbitration proceeding filed before receipt of demand notice of the unpaid operational debt in relation to such dispute? If any one of aforesaid conditions is lacking, the application would have to be rejected. 8. On perusal of the Invoices annexed to the Petition, it is seen that the invoices annexed are from 27.10.2014 to 10.08.2018. However, the amounts that fall within the period of limitation are approximately a sum of Rs. 4,89,849/- as the invoices from the period 06.02.2017 have to be considered for the purposes of calculating the....