2021 (1) TMI 512

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....f the Insolvency and Bankruptcy Code 2016 ('Code') for the alleged default on part of the Respondent in settling an amount of Rs. 93,89,378/- that is due for the goods supplied by the Applicant. The details of transactions leading to the filing of this Application as averred by the Applicant are as follows: i. That the Applicant is a registered HUF firm with its office at 7-H-17, Patel Nagar, Bhilwara, Rajasthan - 311001. It is engaged in the business of trading of Textile Dyes & Chemicals, The Respondent is a Public Limited Company incorporated under the provisions of Companies Act, 1956. The Respondent is engaged in the business of manufacturing Textile Fabric. ii. The Respondent used to issue purchase orders to the Applicant ....

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....terial supplied by the Applicant was not being manufactured as per the desired colour specification and hence, the manufactured goods failed the "Light Fastness Test" on account of which the Respondent had to suffer losses. iv. After identifying the issue of sub-standard quality of raw material the Respondent requested the representative of the Applicant for a meeting at Banswara Office. Thereafter, two meetings were held to discuss the issues at Banswara Factory vide dated 18.05.2018 and at Mumbai Office vide dated 28.05.2018. The Respondent stated that the Applicant agreed and admitted the issues pertaining to sub-standard raw material. v. The Respondent also stated that it was mutually agreed between the Applicant and the Respondent ....

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....ts raised by him in the reply and they are as follows: i. That there is a pre-existing dispute which subsists between the parties, which can be concluded from the Emails and the WhatsApp chats sent by the Respondent to the Applicant. ii. That the Respondent is operating in profits and having cash and cash equivalents of Rs. 13,00,00,000/- as on 31.03-2018, establishes the bonafides of the claims of pre-existing dispute raised by the Respondent. iii. That the Respondent cites the judgement of Hon'ble Supreme Court in the matter of Mobilox Innovations Private Limited vs Kirusa Software Private Limited and the order of Hon'ble NCLAT in the matter of Bhandari Hosiery Exports Ltd. vs IN-TIME Garments Pvt. Ltd. iv. The Respondent furt....