TaxTMI 
TaxTMI 
2022 (6) TMI 825
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....pany Petition filed under section 9 of the Insolvency and Bankruptcy Code, 2016 (the Code) by Bharat Pipe Fitting Co. (Operational Creditor), seeking to initiate Corporate Insolvency Resolution Process ("CIRP") against Prowess International Private Limited ("Corporate Debtor"). Submissions on behalf of the Operational Creditor: 3. The case of the Operational Creditor is that pursuant to various purchase orders placed by the Corporate Debtor between 23 July 2013 and 10 October 2015, it had supplied seamless pipes and seamless steel tubes. It was specifically written in the purchase orders that 100% payment will be made by the Corporate Debtor after receipt of the materials within thirty days. 4. During the transportation of the good....
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.... - 2010. However, there was no dispute for payment up till 2012. The payments with regard to the previous accounts were settled and after settling such dues and adjustments of payment made from time to time in the running and continuous accounts, and after settling all previous accounts, the balance confirmation was issued on 01.04.2016 for the financial year 01.04 .2016 to 31.03.2017. the same was re- confirmed on 01.04.2017 for the financial year 01.04.2017 to 31.03.2018 and subsequently on 01.04.2018 for the financial year 1.4.2018 to 21.02.2019. Thus, the said balance confirmation towards outstanding of the operational creditor was issued after reconciliation of the accounts. 9. The bills raised from 20 July 2013 to 10 October 2015 a....
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....nly) including principal amount of Rs.28,64,368.69 and interest @18% per annum amounting to Rs.30,68,276/ (Rupees Thirty Lakh Sixty-Eight Thousand Two Hundred and Seventy-Six Only). Submissions on behalf of the Corporate Debtor: 13. The Corporate Debtor submits that there is no debt outstanding much less any admitted debt payable to the Operational Creditor. There is also no default on the part of the Corporate Debtor. The account claimed the Operational Creditor was mutually settled and as such the Section 9 petition filed by the Operational Creditor is an afterthought for some ulterior motive. It is apparent from the records that the said claims are otherwise ex-facie barred by limitation. 14. Further, the Corporate Insolvency Re....
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....t no such person named Mr. Sumit Kumar is or was ever in the employment with the Corporate Debtor. The forgery committed by the Operational Creditor is a testimony to the mala fide conduct of the Operational Creditor. 17. There have been a series of mails sent by the Operational Creditor with mala fide motive starting from 27 January 2018 (whereas the last payment after settlement was paid by the Corporate Debtor on 10 October 2015 itself) which have never been answered in view of final settlement of their accounts and as such there was no question of admitting any such purported claim by some employee of the Corporate Debtor or at all. Rejoinder on behalf of the Operational Creditor: 18. The Operational Creditor issued a statutory de....
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.... stop the removing of the assets from the said factory premises of the Corporate Debtor. 22. There is no resolution plan pending under the Insolvency & Bankruptcy Code, 2016. Since the Corporate Debtor was issuing balance confirmation continuously on and from 01 April, 2016 till 1st April, 2018, therefore, the Operational Creditor was of the impression that the said payments will be done by the said Corporate Debtor in due course of time and as such according to a man of ordinary prudence no one will step into the web net of litigation, if there is even of little apprehension for repayment. After 21st February, 2019 when the Corporate Debtor refused to issue any balance confirmation in favour of the Operational Creditor and also failed t....
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....1190 of 2019 decided on 11.11.2019 , held that since the outstanding dues were prior to the period of initiation of 'Corporate Insolvency Resolution Process' and the creditor had not filed the claim at that stage, the application under Section 9 of the Code after completion of the 'Corporate Insolvency Resolution Process' against 'Corporate Debtor' was not maintainable [Para 3]. 27. Further, the judgment of the Hon'ble Supreme Court in Ghanashyam Mishra & Sons Pvt Ltd v Edelweiss Asset Reconstruction Company Ltd. 2021 SCC OnLine SC 313 decided on 13.04.2021 lays down that when the resolution plan is approved by the Adjudicating Authority, the claims as provided in the resolution plan shall stand frozen and will be binding on the corp....