TaxTMI 
TaxTMI 
2021 (5) TMI 577
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....ef facts of the case, as mentioned in the Company Petition, are as follows: (1) M/s. Chryso (India) Pvt. Ltd. (Erstwhile name being The Structural Waterproofing Co. Pvt. Ltd.) ('Petitioner/Operational Creditor') is a Company bearing CIN: U36992WB1950PTC018695, having its registered office at D 30/7, TTC Industrial Area, MIDC Industrial Area, Turbhe, Navi Mumbai, Mumbai-400706. The Company is engaged in the business of manufacturing and supplying of Admixtures viz. PC Chryso Plast Delta D-780, Chrysor (R) Plast Delta D880, D873 etc. used in the ready concrete mixes. (2) M/s. Sri Chowdeshwari Concrete India Pvt. Ltd. ('Respondent/Corporate Debtor') is Company bearing CIN: U26960KA2013PTC071086, was incorporated on 20.09.2013. Its Authorised Capital is Rs. 5,00,000/- and Paid-up Capital is Rs. 4,98,000/-. The Company is engaged in the business of supplying ready mix concrete, concrete solid blocks, construction materials and other ancillary solutions to various individual and corporate clients/customers across Bengaluru. (3) It is stated that the Corporate Debtor being involved inter alia in the supply of ready mix concrete approached the Ope....
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....hich the Operational Creditor was constrained to issue a Demand Notice dated 14th March, 2019 under the IBC, 2016. The Corporate Debtor upon receiving the Demand Notice verbally communicated/requested for a discount of Rs. 9,48,672/- in the form of a credit note to the Operational Creditor. The Operational Creditor sent a Credit Note and an accompanying covering letter to the Corporate Debtor by which they were intimated that the latter had seven days to accept the Credit Note and clear the pending dues towards the Operational Creditor. Despite being in receipt of the Demand Notice and the Credit Note the Corporate Debtor has not made any further payments towards their liability against the Operational Creditor. The Corporate Debtor has miserably failed to comply with the said Demand Notice or acted upon the Credit Note which was sent subsequently at the request of the Corporate Debtor. 3. The Company Petition is opposed by the Corporate Debtor by filing Statement of Objections and Written Arguments dated 12.02.2021 & 19.04.2021, by inter alia contending as follows: (1) The Corporate Debtor is a profit-making Company with sufficient financial strength and is actively do....
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....Rs. 880506 The Operational Creditor has tweaked the number of quantities ordered by the Corporate Debtor and has created additional Purchase Orders as if the same were raised by the Corporate Debtor and is trying to make false claims for the same from the Corporate Debtor without any proof of the same. The Corporate Debtor has not placed the above Purchase Orders for Admixtures. (4) On the other hand, it is submitted that owing to short-fall of Chemical-Dosage of Admixtures so supplied by the Operational Creditor, the Corporate Debtor in order to meet the requisite quality standards was required to add additional dosage of Admixtures into its final product/Concrete, e.g., in place of 0.5% dosage per 300 Kgs. of Cement, the Corporate Debtor was forced to use 0.8% Dosage per 300 Kgs of Cement, thereby causing huge shortage of Admixtures in its proposed ready-mix concrete manufacturing processes. Accordingly, the Corporate Debtor vide its e-mail dated 21.03.2018 had brought its concerns regarding Admixtures over-dosage reconciliation to a tune of Rs. 9,48,672/-. Accordingly, as against the reported short-falls/sub-standard Admixtures so supplied to the Corporate Debt....
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....or Rs. 9,48,672 which we had been discussing during all your visits and now that you have indicated to go legal, the settlement on receipt of credit note for Rs. 9,48,672/- is null and void and we will claim for the actual losses while it is discussed legally. 6. Further Despite the pendency of decision from your end we have made payment of Rs. 4,15,786/- Vide Cheque no. 239636 dt 07.07.2018 of Yes Bank. (5) It is also contended that in the foregoing circumstances, the Operational Creditor has failed to produce any authentic Purchase Orders in support of the aforesaid disputed Purchase Orders and the non-accounting of amounts as per Credit Note dated 06.04.2019 clearly shows that the alleged claim of Rs. 70,33,907/- is false and the same are denied by the Corporate Debtor. The Corporate Debtor has cleared all undisputed dues payable to the Operational Creditor based on the Invoices raised by the Operational Creditors for the Admixtures/Products delivered by them based on the Purchase Orders raised by the Corporate Debtor in accordance with the Purchase Order. (6) It is further contended that owing to the Operational Creditor's supply of sub-standard A....
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.... any part of the amount of debt has become due and payable and is not repaid by the Corporate Debtor. As has been enumerated above there is a valid existing 'debt which has become due and payable on the date of default of the respective invoices enumerated in the Petition. Hence, the provisions of the IBC can be triggered and it is fit case for the Corporate Debtor to be admitted into insolvency. 5. Heard Ms. Asmita Deshpande, learned Counsel for the Petitioner and Mr. Gnanesh H Kempanna, learned Counsel for the Respondent. We have carefully perused the pleadings of the Parties and the extant provisions of the Code and the Law. 6. We may state at the very outset that it is a settled position of law that the provisions of Code cannot be invoked for justified reasons as per the Code. The Hon'ble Supreme Court in the case of Mobilox Innovations Private Limited v. Kirusa Software Private Limited 2018 (1) SCC 353 has inter alia held that I & B Code, 2016 is not intended to be a substitute to a recovery forum and cannot be used to jeopardise the financial health of an otherwise solvent company by pushing it into insolvency. It is also pertinent to mention here that the Hon&....