TaxTMI 
TaxTMI 
2022 (6) TMI 985
X X X X Extracts X X X X
X X X X Extracts X X X X
....ferred to as "IBC, 2016") for initiation of Corporate Insolvency Resolution Process (hereinafter referred to as "CIRP") against the Corporate Debtor, namely "Avon Moldplast Limited". The amount of debt that has been claimed is Rs. 12,64,405/- including interest @24% p.a. as stipulated in the invoices. Brief Facts of the Case 2. The facts, in brief are the operational Creditor has supplied goods i.e., master batches to the corporate debtor for the period from 05.06.2017 till 08.07.2017 for which invoices were raised amounting to Rs. 9,21,287/-. In spite of requests, the amount due was not paid, hence, the operational creditor sent a demand notice dated 25.03.2019, which was duly received by the corporate debtor but was not replied with....
X X X X Extracts X X X X
X X X X Extracts X X X X
....losses on account of defective finished products supplied by the operational creditor and after negotiations with the operational Creditor, settlement has arrived at between the parties on 11.08.2017, in terms of which the alleged debt was duly settled and the operational creditor undertook to make good such losses as incurred by the Corporate Debtor on account of defective supplies by issuing a debit note to the Corporate Debtor for the sum of counter claim or such amount as settled against future supplies but the same was not followed by the operational Creditor. 6. It is further submitted that the counter claim of Corporate Debtor in an admitted liability on part of the Operational Creditor which the Corporate Debtor is legally entitl....
X X X X Extracts X X X X
X X X X Extracts X X X X
....te Debtor is that there were quality issues, because of which the Corporate Debtor suffered a loss. For this plea, a strong reliance has been placed on the letter dated 11.08.2017 written by the Corporate Debtor to the Operational Creditor wherein loss due to inferior quality of goods supplied by the operational creditor has been estimated of Rs. 17,64,000/- and the remarks given by the alleged employee of the Operational Creditor are as under:- "Received letter. Matter discussed with Q.C. Deptt.. For further action as per confirmation from the management. Your losses will be covered in future supply". 11. The operational creditor has, however, strongly denied the above letter and stated that the person who has signed the letter....
X X X X Extracts X X X X
X X X X Extracts X X X X
....lationship has been established between the status of such finished products being due to inferior quality of materials being supplied. 14. The Corporate Debtor has also taken a plea that it is a commercially solvent company; hence, it is a pressure tactics of the Operational Creditor to recover the said money through the mode of this application. In this regard, we are of the view that when the default has occurred, an event/cause of action arises for filing an application under section 9 of IBC, 2016 and, generally, the said application is liable to be admitted subject to condition that said application has not been filed for malicious initiation of insolvency proceedings of the Corporate Debtor and for purposes other than the insolven....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Avon Moldplast Limited is hereby admitted. ii) We hereby declare a moratorium and public announcement in accordance with Sections 13 and 15 of the I & B Code, 2016. iii) This Adjudicating Authority hereby appoint Mr. Parag Singhal [Reg No. IBBI/IPA-001/IP-P-02127/2020-2021/13322], having address at 002-B, Eldeco Apartment, Sector-4, Vaishali, Ghaziabad, Uttar Pradesh 201010 [email: [email protected]], to act as the IRP under Section 13(1)(c) of the Code. iv) The IRP shall cause a public announcement of the initiation of Corporate Insolvency Resolution Process and call for the submission of claims under Section 15. The public announcement referred to in clause (b) of sub-section (1) of Section 15 of Insolvency ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ess. ix) Provided that where at any time during the Corporate Insolvency Resolution Process period, if the Adjudicating Authority approves the resolution plan under sub-section (1) of Section 31 or passes an order for liquidation of the Corporate Debtor under Section 33, the moratorium shall cease to have effect from the date of such approval or liquidation order, as the case may be. x) The Interim Resolution Professional should convene a meeting of the Committee of Creditors and submit the resolution passed by the Committee of Creditors and shall identify the prospective Resolution Applicant within 105 days from the insolvency commencement date. xi) The Operational Creditor/Applicant is directed to deposit Rs. 2,....