TaxTMI 
TaxTMI 
2020 (5) TMI 681
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....humbhal Parvat Patia, Surat - 395010 and is engaged in the business of spinning, weaving and finishing of textiles and trading of coal and lignite cross the country. The present Petition is filed through Shri Sarnir Agarwal, the authorised Representative of the Petitioner. 3. It is submitted that the Respondent Company, Honest Derivatives Private Limited having its registered address at E-43, 2nd Floor, Sumel Business Park, Near New Cloth Market, Outside Raipur Gate, Ahmedabad - 380002 and Factory Gate No.50, Maldabadi, Tal: Jamner, Dist: Jalgaon Maharashtra was incorporated on 05.07.2007 with Identification Number: U93000GJ2007VPC051271. The Corporate Debtor is a company engaged in the business of Manufacturers, Exporters and Suppliers of a Comprehensive variety of products that comprises Dextrose Powder, Corn Products, Glucose Liquid, Glucose D Powder, Malt Dextrin Powder and Starch. The authorised capital of the company is INR.26,50,00,000,00 and the paid up capital is INR.24,14,00,000.00 4. It is submitted by the Petitioner that the Respondent/ Corporate Debtor is indebted to the Petitioner for INR.21,57,700.38 (Rupees Twenty One Lakhs Fifty Seven Thousand Seven Hundred and T....
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.... is entitled to pay interest of INR.5,84,421.38 up to 31.01.2018. 7. It is submitted that the Operational Creditor has issued a Demand Notice in Form 3 and Form 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 along with annexure mentioned therein on 05.02.2018 and delivered it to the registered office of Corporate Debtor through Speed Post on 09.02.2018. 8. It is submitted that the Operational Creditor has received a reply of notice from the Corporate debtor through their Lawyer IC Legal on 19.02.2018, which expresses the complete denial of the debt demanded by Operational Creditor contrary holding liable the Operational Creditor to pay an aggregating sum of INR.4,44,17,608.OO for some purported losses incurred by Corporate Debtor. 9. It is submitted that the Corporate Debtor through its reply tried to create a dispute, which is purely spurious, hypothetical and illusory. At the very outset, no such dispute was in existence prior to their receiving of the statutory notice. The Corporate Debtor's reference is entirely irrelevant to the claim of the Operational Creditor because as such the reply notice refers to some purported claims of t....
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....alia of manufacture of starch products and other products for the past may years and has acquired vast reputation and goodwill in the industry. It was desirous of purchasing coal for use in its boiler in the factory for the production of starch and other products. The Respondent's sister concern Shri Tradco Deesan Private Limited ("STDPL") also required coal for Industries Private Limited represented, warranted and assured to the Respondent inter alia that Rawalwasia was competent and in a position to supply the quality, quantity and specification of coal required by the Respondent and STDPL. Mr. Samir Agarwal further represented that Rawalwasia had already imported 71700 metric tons on 25.09.2016. On the basis of the past dealings with Rawalwasia, the Respondent and Rawalwasia entered into a High Seas Sale Agreement dated 24.09.2016 ("HSS Agreement") for the sale of 1,500 metric tons of Indonesian Steam Coal, and STDPL and Rawalwasia entered into a High Seas Sale Agreement dated 24.09.2016 for the sale of 3,500 metrics tons. 15.2 It is stated that the HSS Agreement, Rawalwasia called upon the Respondent to pay certain Custom Duty to the respective authority. On 17.10.2016 the....
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....he receipt of the Form-3 notice dated 03.02.2018 from the Petitioner. The respondent in order to substantiate the existence of the dispute between the parties. In view of the said correspondence that a dispute was already in existence way before the receipt of the notice under IBC which Petition is liable to be rejected. 15.9 It is stated that the existing disputes between the parties and in view of the Suit for damages pending before the Court against the Petitioner, the Petitioner cannot seek to invoke the provisions of the Bankruptcy Code for recovery any amount money, wherein admittedly the disputes between the parties existing from the very beginning such an exercise in impermissible in law. 15.10 Lastly, it is stated that the nature of industries consumption of coal. The inferior quality of goods was tested by the Respondent only upon receipt and usage. Upon finding out about the inferior and damaging quality, the Respondent immediately called upon the Applicant to rectify the same and to stop supply until such quality defects were rectified. The Respondent submits that prevent application be dismissed with exemplary and compensatory costs. 16. The Operational Creditor has....
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....o the Petitioner's claim against the Respondent. Hence, this defence is not entertained. ORDER 18. Considering the material, papers filed by the Petitioner on record, the arguments of the Counsels from the both sides and the facts mentioned in the Para No. 20, 20.1, 20.2, 20.3, 20.4, 20.5, 20.6 & 20.7 this Adjudicating Authority is satisfied that, a) Existence of debt is above Rs. One Lac; b) Debt is due; c) Default has occurred on 10.11.2016; d) Petition has been filed within the limitation period as the invoices are 2016 the date of default is 10/ 11/2016 whereas the Application is filed on 30.07.2018 which is within 3 years of the default of the debt; e) Copy of the Application filed before this Tribunal has been sent to the Corporate Debtor, Notice has been duly served. The Respondent has failed to appear before this Adjudi ating Authority and the Petition filed by the Petitioner under Section 9 of 1B Code is found to be complete for the purpose of initiation of Corporate Insolvency Resolution Process against the Corporate Debtor Company. Therefore, the present 1B petition is admitted with the following directions: 19. As per the provisions of Section 13 and 1....