2022 (4) TMI 572

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...., [Dr. Alok Srivastava] Member (Technical) And [Ms Shreesha Merla] Member (Technical) For the Appellant : Mr. Akhilesh Kumar, Mr. Vipin Garg, Mr. Arjun Agarwal & Mr. Krishna Goel, Advocates. For the Respondent No. 5 : Mr.Pulkitesh Tiwari, Ms. Bency Ramakrishnan & Mr. Akash Menon, Advocates for R-5. For the Respondent No. 6 : Mr. Rajat Chaudhary, Advocate for R-6. JUDGEMENT ( Per : Shreesha Merla, Member (T) ) 1. This Appeal is filed by the Suspended Director of M/s. Grades Entertainment Private Limited/ the 'Corporate Debtor' under Section 61 of the Insolvency and Bankruptcy Code, 2016, (hereinafter referred to as 'The Code'), being aggrieved by the Impugned Order dated 15/02/2022 passed by the Learned Adjudicating Authori....

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....ub-Contractors. The Learned Counsel strenuously contended that the Vendors/Sub-Contractors appointed by M/s. Cox & Kings included the 'Operational Creditor' who was providing services directly to M/s. Cox & Kings and their role was only of an accounting and payment mechanism to raise Invoices in the name of the 'Corporate Debtor' and therefore never incurred any 'debt', in terms of the provisions of Section 3(11) of the Code. Learned Counsel drew our attention to the purchase Order dated 15/01/2019 issued by M/s. Cox & Kings. Thereafter on 31/01/2019, M/s. Cox & Kings appointed the 'Corporate Debtor' as its authorised payment agent to receive and disburse the amounts, as per instructions, the 'Corporate Debtor had released four payments. ....

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....cess was initiated against M/s. Cox & Kings vide Order dated 22/10/2019, pursuant to which, the 'Corporate Debtor' filed a Claim as an 'Operational Creditor' with the Liquidator of M/s. Cox & Kings. For better understanding of the role of the Appellant and the first Respondent, the Tax Invoice dated 21/01/2019 is reproduced as hereunder: 7. The aforenoted Tax Invoice shows that the payment was made to the account of the 'Operational Creditor' by the 'Corporate Debtor'. The material on record evidences that the 'Corporate Debtor' deposited TDS of Rs. 4,12,000/- which is the TDS on the entire amount of the Invoice of Rs. 2,06,00,000/-. It is not disputed that the 'Operational Creditor' deposited the GST of Rs. 37,08,000/- on the entire amo....

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....ding is perfectly justified in the facts and circumstances of the case and therefore we are of the considered view that the Impugned Order does not suffer from any factual frailty. Hence, this Appeal fails and is dismissed accordingly. No Order as to costs. ============= Document 1 Annexure-H 43 ANNEXURE-E/3 PARAS ART STUDIO Exibitions Conferences Events www.paresortstudio.com TAX INVOICE ORIGINAL FOR RECIPIENT hvoice #PAS/2018/01/337 2.43.08,000.00 Due on 21/01/2019 Invoice Date: 21/01/2019 Payment Terms. Due on receipt FROM GSTIN: 07AADFP1073G1Z6 PAN: AAOFP1073G PARAS ART STUDIO BLOCK A-25/7 MIDDLE CIRCLE CONNAUGHT PLACE NEW DEUHL 110001 Delhi (07) Event PETROTECH 2019 to....