TaxTMI 
TaxTMI 
2022 (7) TMI 357
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....CIRP") against the Corporate Debtor- First Carbon Technologies Pvt. Ltd. for the default amount of Rs. 2,50,66,590/- (Rs. 38,49,859/- as principal debt and Rs. 2,12,16,731/- as interest). The date of default is 20.02.2016. 2. The averment made by the Operational Creditor are summarized as under: (i) The Corporate Debtor issued two Letters of Intent bearing no. LOI/FCT/037 and LOI/FCT/045 on 30.04.2010 and 15.09.2010 respectively to the Operational Creditor for the supply of Flip Flow Screen, Seven Drag Chain Conveyors, and Steep Angle Conveyors ("Goods"). On accepting the Letters of Intent by the Operational Creditor, the Corporate Debtor issued three purchase orders bearing no. PO/FCT/PROC/0076/10-11 dated 29.04.2010 (first pur....
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....notice on 02.09.2014 for the payment of Rs. 38,49,859/- along with interest of Rs. 39,40,634/- to the Corporate Debtor. But, the Corporate Debtor failed to pay the aforesaid outstanding amount. (v) Thereafter, the Operational Creditor applied to initiate Arbitration proceedings before Telangana Micro and Small Enterprises Facilitation Council, Hyderabad (hereinafter referred to as "MSME Council"). Four opportunities were granted by the Hon'ble MSME Council but the Corporate Debtor did not appear. The Hon'ble MSME Council vide order dated 20.02.2016 passed an order in favour of the Operational Creditor for the payment of Rs. 42,69,428/- for the principal amount and Rs. 84,79,605/- for the interest totaling Rs. 1,27,49,033/- ....
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.... filed with the application was not legible. This Adjudicating Authority further directed the Operational Creditor to file an affidavit to clarify that the said award has reached its finality and no appeal is preferred or pending. It was also directed by this Adjudicating Authority to clarify further on the issue of limitation because the cause of action arose much prior to passing the award and to make a reference to arbitration proceedings which may amount to pre-existing dispute. 4. The Operational Creditor filed its affidavit on 22.10.2019 on the aforesaid clarifications sought by this Adjudicating Authority annexing with the legible copy of the award dated 20.02.2016 passed by the Hon'ble MSME Council and submitted as under; ....
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....ct, 1963. In the case of B.K Education Services (P) Ltd. Versus Parag Gupta & Associates reported in [2018] 98 taxmann.com 213, Sagar Sharma Versus Phonix ARC (P) Ltd., reported in [2019] 110 taxmann.com 50 (SC) and Gaurav Hargovindbhai Dave Versus Asset Reconstruction Co. (India) Limited reported in [2019] 109 taxmann.com 395 (SC), the Hon'ble Supreme Court has made it abundantly clear that application filed under IB Code (under section 7 or 9 of the IB Code) will manage and govern by Article 137 of the Limitation Act, 1963 which states that period of limitation is 3 years. The period will start to run from the date when the right to apply accrues. Thus, if one calculates three years from the date of the award, the limitation period ex....
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....s unfathomable to say that it would not be in a position to repay an amount of Rs. 2,40,20,575/-. 6. Heard the Ld. Counsels of the parties and perused the material on record. The Operational Creditor supplied the goods to the Corporate Debtor and raised 18 invoices of Rs. 4,25,39,644/-. It is not a disputed fact that out of the total aforesaid amount, the Corporate Debtor paid an amount of Rs. 3,86,89,784/-. The Demand notice under Section 8 of the IB Code in form-3 was issued by the Operational Creditor to the Corporate Debtor on 04.04.2019 for the payment of Rs. 2,40,20,575/- (Rs. 38,49,859/- as principal debt and Rs. 2,01,70,716/- as interest), and the same was delivered to the Corporate Debtor on 09.04.2019. The Corporate Debtor repl....