TaxTMI 
TaxTMI 
2022 (2) TMI 1013
X X X X Extracts X X X X
X X X X Extracts X X X X
....') R/w. Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016. seeking an Order to initiate Corporate Insolvency Resolution Process (hereinafter referred as 'CIRP') against the Corporate Debtor viz., M/s. Grades Entertainments Private Limited, declare moratorium and appoint Interim Resolution Professional (hereinafter referred as 'IRP'). 2. The Operational Creditor/Petitioner has averred as follows:- a. It is the case of the Operational Creditors that they are carrying on the business under the name and style "Paras Art Studio". They were engaged by Corporate Debtor through Cox & Kings Ltd. ("C & K") to provide designing and fabrication services for the event Petrotech 20....
X X X X Extracts X X X X
X X X X Extracts X X X X
....gly, invoices were raised on the Corporate Debtor and partly paid by the Corporate Debtor. In the circumstances, Corporate Debtor came into direct contractual relationship with Operational Creditors as a principal and the role of C & K whether taken as an intermediary or co-principal does not absolve corporate debtor from the liability of making the payment to operational creditors. Moreover, corporate debtor having partly paid the amount raised in the invoices, it is estopped from denying the relationship or liability. Hence, the captioned petition. 3. The Corporate Debtor has also filed reply to the captioned petition and submitted that present petition is not maintainable u/s. 9 of IBC, 2016, as the payment as claimed by the Operation....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Creditor also filed the rejoinder and denied all the contentions and averments raised by the corporate debtor and further submitted that operational creditors have been able to obtain the purchase order dated 30.01.2019 placed by C & K on the respondents and invoice dated 30.01.2019 raised by the respondent on C & K asking for services including the services performed by the OC, the downstream service providers. It is further submitted that the respondent is not an agent as per the arrangement right from inception. The invoice was raised as per instructions on the respondent and said invoice is booked by the respondent in its books and not in C & K books. Furthermore, the said invoice is partly paid by the respondent and not by C & K. It i....
X X X X Extracts X X X X
X X X X Extracts X X X X
....sion, we have carefully perused the transactions and invoices, which shows that the invoice was raised in favour of Respondent and not C & K. Furthermore, part payment is made by the Respondent and not by C & K. The respondent has deducted TDS and same is evident from Form 26AS and the Operational Creditor has deposited GST amount of Rs. 37,08,000/- on the entire amount of invoice in favour of the respondent. Therefore, it is clear from the above discussion that the respondent was not merely acting as an agent rather it was acting as the principal and hence is liable to pay the amount to the petitioners which it defaulted in part. As a result, this authority is inclined to initiate the CIR Process of Corporate Debtor. Therefore, the present....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s of Section 9(5) of IBC, 2016, moratorium as envisaged under the provisions of Section 14(1), shall follow in relation to the Corporate Debtor and following shall remain prohibited during the moratorium: a. The institution of suits or continuation of pending suits or proceedings against the respondent including execution of any judgment, decree or order in any court of law, tribunal, arbitration panel or other authority; b. Transferring, encumbering, alienating or disposing of by the respondent 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 respondent in respect of its property including any action under the ....