TaxTMI 
TaxTMI 
2022 (4) TMI 526
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....rging, forming, pressing machining of HDPE, PP, PPR, PVC. Job works, importing and exporting all kinds of HDPE, PP, PPR, PVC, including production and manufacture of those items. The Corporate Debtor placed various purchase orders, service orders and also job work orders on the Operational Creditor for purchase and supply of HDPE Helo Bar, HDPE pipes, End Plugs, 225mm Flange etc., for reprocessing of HDPE scrap. The Corporate Debtor also placed various service orders on the Operational Creditor. Pursuant to issuance of the purchase orders, invoices have been raised by the Operational Creditor. Thereafter, the Operational Creditor placed orders on the Corporate Debtor for job works. The Corporate Debtor never made payments to the Operational Creditor as per the invoices and made payments only on ad hoc basis. The Operational Creditor issued a demand notice calling upon the Corporate Debtor to discharge the outstanding amount of Rs. 1,93,44,700/-. The Corporate Debtor issued a reply notice stating that there is no due to the Operational Creditor. Hence, this Petition seeking to initiate Corporate Insolvency Resolution Process (CIRP). 3. The Corporate Debtor filed counter raising the....
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....r. M.V. Bhushanam, Mutheswara Rao Meka and Pathuri Nagabhushanam were partners of M/s. MAP Industrial Projects LLP, except two members Meka Manjula and Janardhana Rao Saggurti, who are wife and father-in-law of Mr. M.V. Bhushanam. M/s. MAP Industrial Projects LLP is the promoter and 60% shareholder in Corporate Debtor under joint venture with foreign Company M/s. Union Pipes Industry LLC, Abu Dhabi, UAE which is having 40% share in Corporate Debtor. Mr. M.V. Bhushanam and Mr. Pathuri Naga Bhushanam were main Directors in M/s. UPI Polymers Private Limited, who were appointed as Vice-Chairman & Director and Managing Director respectively and they were delegated powers with respect to running and dealing with all the activities of the Corporate Debtor since beginning. The present operational debt raised by the Operational Creditor pertains to the said period. Mr. M.V. Bhushanam, along with other partners, alienated their shares in favour of New Indian Promoters in MAP Industries Projects LLP which is a joint venture with Union Pipes Industry LLC. Mr. M.V. Bhushanam and his group have submitted resignations to the Corporate Debtor and were accepted. Subsequently Mr. M.V. Bhushanam issu....
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....tion is with regard to payments which are due against the invoices issued to the Corporate Debtor. The Interim Resolution professional (IRP) has been enrolled as an Insolvency Professional under Regulation 7 read with Regulation 9 of the IBBI (Insolvency Professionals) Regulations, 2016. The payments which were to be given to the Operational Creditor along with the other long pending debtors are withheld by the Corporate Debtor. It has not been discussed in any of the Board meetings that the payments to the Operational Creditor should be withheld. There is not an iota of evidence to show that disputes existed between the parties. As far as the payment of the present claim amount is concerned, it is against the invoices to be paid by the Corporate Debtor. Minutes of the Board meeting dated 10.06.2017 would establish that the dues with respect to the Operational Creditor were not disputed. The Operational Creditor merely states that the debts extended by the Corporate Debtor and also the payments to be made to the Corporate Debtor and his associates shall be withheld. Subsequent to the meeting dated 10.06.2017, the Corporate Debtor never communicated any reasons for withholding the a....
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....or as required under Section 8 of IBC, for which a reply was issued by the Corporate Debtor. In the said reply it is stated that Mr. M.V. Bhushanam, who is an Ex-Director of the Corporate Debtor has conducted the affairs suiting to his self-interest and has placed orders for huge quantities, which are lying in the factory as non-movable items and that the order placed by him on M/s. ITS Tecnodue India Private Limited i.e., the Operational Creditor herein is to favour it, without considering whether the accessories are actually required or are movable. The same has resulted in piling up huge material in the factory. It is also stated that due to the said reasons the Corporate Debtor has been incurring heavy interest, including penal interest, on the borrowings taken from the Bank for the working capital, on account of non-realization of dues extended by Mr. M.V. Bhushanam. It is further stated that after taking over the charge of the Company by the new Management in the month of June 2017, all efforts are being made by the new management, by infusing additional share capital from the promoters as working capital, to improve the business of the Company, to bring out the Company from ....
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....proved by the Management at Abu Dhabi and hence, when the Management at Abu Dhabi does not instruct anything with regard to the dues of the Operational Creditor, the same cannot be withheld. The dispute as can be seen from the reply notice is with Mr. M.V. Bhushanam, who was allegedly responsible for the financial loss of the Corporate Debtor. It also can be noted from the reply notice that the Corporate Debtor is not doing well and is in the state of losses and that endeavours to bring out the company from the loss making to profit making are being done. The invoices pertaining to the supplies are filed and the same are not denied. There is acknowledgment of the debt by way of acknowledging the letter with the subject "confirmation of accounts" which is dated 11.12.2017. As per the said account statement the credit amount is Rs. 2,24,27,544/-. There is an acknowledgment on the part of the Corporate Debtor by way of signing on the said statement. The said statement is subsequent to the removal of Mr. M.V. Bhushanam as an Authorised Signatory, which clearly implies, if not shows, that the transactions between the Operational Creditor and the Corporate Debtor were not disputed even a....