2020 (9) TMI 1154

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.... the I&B (Application to Adjudicating Authority) Rules, 2016, by inter alia seeking to initiate Corporate Insolvency Resolution Process (CIRP) in respect of M/S. Solas Fire Safety Equipment Private Limited, on the ground that it has committed default for an amount of Rs. 4,35,487.50/- (Rupees Four Lakh Thirty Five Thousand Four Hundred Eighty Seven and Fifty Paise Only) along with interest thereon @18% per annum. 2. Brief facts of the case, as mentioned in the Company Petition, are as follows: (1) M/S. Aster Technologies Private Limited (hereinafter referred to as 'Petitioner/ Operational Creditor') is a Company incorporated under the Companies Act, 1956, having CIN: U74899DL1998PTC033500. The Company is engaged in the b....

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....e legal calling upon the Corporate Debtor to pay the aforesaid sum. The Corporate Debtor through its reply letter dated 13.03.2018, acknowledge the debt due and made assurance that payment would be cleared in next 30 days. However, till date, the Corporate Debtor has not showed any interest in making the payment. Again, another Demand Notice dated 04.10.2019 was issued to the Corporate Debtor, U/ s 8 of the Code, through their Counsel, on the registered office of the Corporate Debtor. No notice of dispute received thereafter within stipulated period of 10 (ten) days. The Corporate Debtor almost after a span of two months, gave an evasive reply to the said notice on 13.12.2019. From a bare perusal of balance sheet and profit and loss account....

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....spondent raised dispute vide their Reply dated 13.12.2019. The contentions raised in the Reply is totally contrary to their earlier letter dated 13.03.18, and these contentions/ allegations are not all tenable and they cannot constitute valid and legal dispute. Since the Respondent did not appear before the Adjudicating Authority, the amount involved in the case is mere Rs. 4.35 lakhs, and initiation of CIRP is not a solution for the Petitioner, which is small entrepreneur and operational Creditor. Operational. And chances of getting dues of Operational Creditors are very less in comparisons to secured Creditors. 5. For the aforesaid reasons and circumstances, we are of considered view that instead of keep the case pending for service of....