TaxTMI 
TaxTMI 
2022 (11) TMI 56
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....e Insolvency and Bankruptcy Code, 2016 ('Code') read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 claiming to be an Operational Creditor for initiation of Corporate Insolvency Resolution Process ('CIRP') against M/s. Ujjain City Transport Services Limited ('Corporate Debtor'). The amount of claimed debt in default is Rs. 68,58,428/- (Rupees sixty eight lakhs fifty eight thousand four hundred twenty eight) and the date of default for each invoice is 10 days after the date of respective invoice. 2. The respondent is a state-owned Government Entity, engaged in business of administrating and running city buses in Ujjain region of Madhya Pradesh. The Authorized share ....
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....t has vide the said undated letter assured to make payment by way of instalments, no payment was ever made by the respondent. The applicant again through various letters requested the respondent to make payment to which the respondent never replied and therefore, the applicant sent demand notice under section 8 of the Insolvency & Bankruptcy Code, 2016. Since the respondent has through said undated letter requested the applicant to exclude any amount of gas purchased by the respondent after 10.02.2013, the applicant has excluded any such amount while claiming the default in the demand notice. (v) The demand notice dated 26.08.2019 under section 8 of the Code was duly served on the corporate debtor. The track report is placed on rec....
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....AG), however, C & AG through their letter dated 06.11.2017 stated that the corporate debtor is not the State Government entity due to backing of Ujjain Development Authority and therefore, the corporate debtor may appoint any independent auditor without any intervention of C & AG. (iv) The respondent through letter dated 20.07.2017 requested the applicant to waive the interest amount charged on the delay payments and acknowledged to pay the outstanding principal amount. Further, along with the said letter the respondent paid Rs. 5,00,000/- through cheque dated 19.07.2017 as part payment against the outstanding principal amount. (v) As against the claimed amount of Rs. 68,58,428/-, the principal amount being Rs. 32,73,795/-....
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....lity of application under Section 9 assumes its importance; and even if there exists a debt which is defaulted and not paid, the application filed under Section 9 of the IBC, 2016 for initiating CIRP proceedings against the defaulting corporate debtor would not be maintainable if the debt itself is barred by the limitation under Article 137 of the Limitation Act, at the time of filing of the petition. 7. Admittedly in the present case, the invoices under reference were raised in the year 2012-13 and the last invoice by the corporate debtor was made on 16.02.2013. The date of default is ten days after the date on which invoices were raised on & from 10.12.2012 to 26.02.2013 (upto 10.02.2013). Therefore, considering the date of last invoic....