TaxTMI 
TaxTMI 
2021 (5) TMI 498
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....resolution process ("CIRP") under Section 9 of the Insolvency and Bankruptcy Code 2016 ("the Code') of the Respondent JSP Projects Pvt. Ltd. for the alleged default on the part of the Respondent in clearing the debt of Rs. 4,26,38,271/- (Rupees Four Crore Twenty-Six Lakhs Thirty-Eight Thousand Two Hundred and Seventy-One only), as alleged by the applicant, towards the Services provided 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 partnership firm engaged in the business of providing services of Marketing Consultancy and Project Consultancy. The applicant states that the Respondent Company is into installation of 33/....
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....cy fee of Rs. 15 Lakh at this stage, which was duly paid by the Respondent to the applicant. The applicant alleges that upon instruction of the Respondent the applicant raised an invoice of Rs. 2,65,000/- vide dated 18.06.2019 as the remaining payment was made by the Respondent in cash in 3-4 tranches prior to 18.06.2019. vi. The applicant further submits in its application that the applicant extended its services to the Respondent to enable them to fulfil the terms of the LOI and resultantly the following LOA's were issued to the Respondent by JBVNL: (i) LOA No. 33/R-APDRP-1087 (Part-1) dated 12.09.2019 for supply of all materials and equipment's related to the Contract for overhead and/or underground cabling work....
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....ence the applicant also raised an invoice dated 27.12.2019 for an amount of Rs. 69,51,084/- calculated @ 2% of Rs. 29,45,37,498/-. Further, another invoice dated 20.03.2020 of Rs. 3,05,13,620/- was raised by the applicant and another invoice dated 20.03.2020 for an amount of Rs. 31,23,566/- was raised. The applicant states that the consultant of the applicant followed up persistently and another invoice dated 10.07.2020 for an amount of Rs. 33,58,791/-. ix. The applicant states that an amount of Rs. 4,26,38,271/- excluding interest is due as on 20.03.2020 from the Respondent. The applicant further states that meetings with the Respondent were held where the Respondent assured that the payment will be made soon. x. That app....
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....ch is contrary to the impossible services promised to be rendered as defined in the repeated Clause 3.5 which is nothing but an inducement in "taking care of all bureaucratic interference related to project.......... and completion of the project.". That said Consultancy Agreement referred in the above Application falls under Section 18 of the Indian Contract Act, 1872. iv. The Respondent further submits that the important ingredients of a Valid Contract is that it should be for a lawful consideration and with a lawful object and it is once again reiterated that the repeated Clause 3.5 of the Consultancy Agreement referred by the Applicant in the aforesaid Application fails the test of Section 10 of the Indian Contract Act, 1872. ....
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....ss and injury to the Respondent as mentioned above and the following counter claims are being preferred by the Respondent and the same was sent on 14.09.2020 to the applicant in the reply to the Demand Notice dated 11.09.2020. 3. We have heard the Ld. Counsels for the Operational Creditor and Corporate debtor and perused the averments made in the application as well as the documents enclosed with the application. 4. We have heard the arguments made by the counsel for the Operational Creditor and perused the documents filed by him. The Operational Creditor has established the existence of debt and default on the part of the Corporate Debtor. The Corporate Debtor's plea of Consultancy agreement being void ab initio and error in comp....