2020 (2) TMI 1587

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.... Insolvency Resolution Process (CIRP) against Cosmic Export Solutions (India) Private Limited (hereinafter called "Corporate Debtor") alleging that Corporate Debtor committed default in making payment of Rs. 18,09,541/- including interest @ 24% p.a., by invoking the provisions of Section 8 and 9 of the Insolvency & Bankruptcy Code (hereinafter called "Code") read with Rule 5 and 6 of Insolvency & Bankruptcy (Application to Adjudicating Authority) Rules, 2016. 2. The petition reveals that the Petitioner has provided customs clearing services during the period from 2015-2019 to the Corporate Debtor and raised various invoices in respect of the services provided to the Corporate Debtor. 3. The counsel for the Petitioner submitted that t....

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....,000/- 22.02.2019 18.02.2019 001547 50,000/- 22.02.2019 18.02.2019 001545 50,000/- 22.02.2019 18.02.2019 001549 21,675/- 22.02.2019 18.02.2019 001546 50,000/- 22.02.2019 18.02.2019 001548 50,000/- 22.02.2019 21.02.2019 001824 59,861/- 22.02.2019 21.02.2019 001640 69,513/- 22.02.2019 4,01,049/-   4,01,049/-   6. All the abovesaid cheques when presented for payment by the Petitioner were returned as dishonored for the reason - "insufficiency of fund". 7. The Corporate Debtor contended that they have made payment to the extent of Rs. 14,17,000/- to four persons, who are employees of the Petitioner, and the Petitioner failed to account for the same, whereas the Petitioner refutes the same, saying tha....

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....dishonor of the cheques in the month of February, 2019 to show that there is an existence of dispute, so that the Corporate Debtor can evade the clutches of insolvency proceedings. The suspension of services by the Corporate Debtor after the dishonor of the cheques cannot fall within the ambit of dispute as provided under Section 5(6) of the Code. 10. The Corporate Debtor contended that invoice bearing no. 008/15-16 dated 22.08.2015 and invoice bearing no. 013/15-16 dated 16.09.2015 pertains to some other party whereas the Petitioner responded saying that the Corporate Debtor cannot raise this dispute after 4 years of raising the invoice and also enclosed copies of emails to show that the transactions were executed after taking instru....

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....to the Petitioner. However, no such letters were produced by the Corporate Debtor in their pleadings. Hence the contention of the Corporate Debtor that there is no liability is not justified. 12. On hearing the arguments of either side and on going through the pleadings it is clearly established that there is a debt and default on the part of the Corporate Debtor. The disputes raised by the Corporate Debtor are not real disputes and in fact spurious and they doesn't fall under the ambit of Section 5(6) of the Code, which provides as below: dispute" includes a suit or arbitration proceedings relating to- (a) the existence of the amount of debt; (b) the quality of goods or service; or (c) the breach of a representation or warranty; 13. It....

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....h the directions as mentioned below: (a) that this bench hereby prohibits the institution of suits or continuation of pending suits or proceedings against the Corporate Debtor including execution of any judgement, decree or other in any court of law; transferring, encumbering, alienating or disposing of by the Corporate Debtor any of its assets or any legal right or beneficial interest therein; any action to foreclose, recover or enforce any security interest created by the Corporate Debtor in respect of its property including any action under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002; the recovery of any property by an owner or lessor where such property is occupied by or in ....