TaxTMI 
TaxTMI 
2021 (9) TMI 633
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.... Bankruptcy (Application to Adjudicating Authority) Rules, 2016 in the capacity of "Operational Creditor" by invoking the provisions of section 9 of Insolvency & Bankruptcy Code, 2016 (Code) against Opal Luxury Time Products Limited, Corporate Debtor, for initiating Corporate Insolvency Resolution Process (CIRP). 2. In the requisite Form, under the head "Particulars of Operational Debt" the total amount in default is stated to be Rs. 10,45,467/- (Rs. 6,92,514/- as a sum + Rs. 3,52,953/- as an interest @24% p.a.), The date of default is stated to be 09.01.2018. SUBMISSIONS BY THE PETITIONER 3. A brief history of the transaction between the Petitioner and the Corporate Debtor is as follows. The Petitioner is in the business of manufa....
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....e current situation. SUBMISSIONS BY THE CORPORATE DEBTOR IN REPLY 9. The Corporate Debtor is in the business of manufacturing and marketing of wall clocks and table clocks. The Petitioner is a supplier to the Corporate Debtor. 10. The Corporate Debtor submits that the outstanding in the books of the Corporate Debtor towards the goods supplied by the Petitioner is only Rs. 6,92,514/-. 11. The Corporate Debtor desists the claim of the Petitioner of interest on the amount as it was a business deal and not a money lending transaction. 12. The Corporate Debtor informed the Petitioner about the financial issues faced by the Corporate Debtor company and asked for time to pay the dues of Rs. 6,92,514/-. 13. In February, 2020, the ....
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....titioner has issued demand notice under section 8 claiming entire amount due and the Corporate Debtor replied to said demand notice stating that they were unable to pay the monies and were facing financial distress. The Corporate Debtor filed reply and sought time of 12 to 15 months to pay the outstanding balance. Therefore, in view of the facts of the present case which clearly demonstrate the debt which was due for payment under the invoices raised by the Petitioner and the admission of liability by the Corporate Debtor and express declaration of inability of non-payment due to financial crisis, this petition is admitted. 19. The application filed by the Petitioner is on proper Form 5, as prescribed under the Adjudicating Authority Rul....
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....el or other authority; b) transferring, encumbering, alienating or disposing of by the corporate debtor any of its assets or any legal right or beneficial interest therein; c) any action to foreclose, recover or enforce any security interest created by the corporate debtor in respect of its property including any activity under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002; d) the recovery of any property by an owner or lessor where such property is occupied by or in possession of the corporate debtor. II. That the supply of essential goods or services to the corporate debtor, if continuing, shall not be terminated or suspended or interrupted duri....