TaxTMI 
TaxTMI 
2022 (3) TMI 867
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....rders on Operational Creditor and the Operational Creditor has been selling, supplying and dispatching the waste papers, old newspapers, etc., to the Corporate Debtor for which the Operational Creditor has been issuing dispatch details of the supplies of waste paper and invoices. Corporate Debtor has been receiving the goods dispatched by Operational Creditor in good order and condition and no complaint about any defects or shortcomings of the said supplies has been received. ii. The Operational Creditor raised invoices on the Corporate Debtor against the supplies made by it: But the Corporate Debtor has miserably failed in making payments to Operational Creditor for the invoices, beginning from 14.11.2017 to 30.11.2019. iii. Operational Creditor issued demand notice dated 16.03.2020 to the Corporate Debtor for. which no reply was issued. Since the Corporate Debtor failed to discharge the amount, this application seeking admission of the Petition, initiation of Corporate Insolvency, Resolution Process (CIRP), granting moratorium and appointment of Insolvency Resolution Professional (IRP) as prescribed under the Code and Rules thereon. 3. The Corporate Debtor fi....
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....r as the excess balance appeared in the books of accounts. iv. The payments made by the Corporate Debtor either in the accounting period of 14.11.2017 to 31.03.2020 or in the claim period of 14.11.2017 to 30.11.2019 both satisfies the value of dues claimed by the Operational Creditor. v. From the transactions present in the bank account statement, it is clear that the Operational Creditor made excess payments. vi. The ledger account statements of the Operational Creditor consists only the sales to the Corporate Debtor and not the receipts to the Operational Creditor. vii. In respect of document No. 310 in the Petition, letter issued by M/s. Vaishnavi Impex to the Operational Creditor states that the supplies made to M/s. Vaishnavi Impex would be paid by the Corporate Debtor. It is impractical to make the Corporate Debtor liable for the payments of M/s. Vaishnavi Impex by the Operational Creditor. The Corporate Debtor was never aware about the letter given by M/s. Vaishnavi Impex and never undertook the payment guarantee to the Operational Creditor on behalf of M/s. Vaishnavi Impex. The Corporate Debtor, Operational Creditor and M/s. Vaishnavi Imp....
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....to 30.11.2019 the Corporate Debtor made part payments to a tune of Rs. 7,65,40,378/- and the remaining balance is Rs. 3,60,11,075/-. The Operational Creditor supplied goods worth Rs. 8,36,00,143/- to M/s. Vaishnavi Impex and received payments to a tune of Rs. 8,26,48,867/- and still Rs. 9,51,276/- is due from M/s. Vaishnavi Impex. The Corporate Debtor acknowledged the debt on the ledger account statement of Operational Creditor maintained by the Corporate Debtor. The Corporate Debtor took benefit out of the invoices in the form of availing input tax credit. As per Section 16(2) of the Central Goods and Services Act, 2017 a person is not entitled to claim input tax credit benefit unless he has received the goods and services. The moment the Corporate Debtor availed the input tax benefit, the Corporate Debtor is under the obligation to pay the invoices amount. iv. The Corporate Debtor failed to make payments. The Corporate Debtor created a false story that their accounts team erroneously clubbed all the purchases belonging to the Corporate Debtor and M/s. Vaishnavi Impex, for the first time. The Corporate Debtor did not file any documents to show that M/s. S. Rao & Associate....
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....that the accounts are separately and clearly maintained for both the Corporate Debtor and M/s. Vaishnavi Impex. The account of the Corporate Debtor would show the closing balance as on 31.03.2018 is Rs. 2,38,88,424.50/-. The ledger account of the Operational Creditor which is duly acknowledged by the Corporate Debtor would also show the same amount as a closing balance as on 28.02.2019. Hence, it is clear that by 28.02.2019 there was due of Rs. 2,38,86,424.50/- to the Operational Creditor from the Corporate Debtor. With regard to the remaining amount of the claim, invoices pertaining to the said period and also to the period prior to that are filed which are 284 in number and the same are categorically admitted by the Corporate Debtor in its counter. It also can be noted that the Corporate Debtor did not reply for the demand notice and for the first time it is raising the defences as raised in the counter after this application is filed. The account statement filed by the Operational Creditor would show that the amounts paid by the Corporate Debtor are adjusted and the claim is only with regard to the amount remaining after such adjustment. As rightly contended, there is no evidenc....