TaxTMI 
TaxTMI 
2022 (11) TMI 455
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.... wires, aluminium and copper enamelled wires, copper strips etc. The Application is filed by Mr. Sumit Agarwal, Director of Operational Creditor vide its Board Resolution dated 10.08.2020, claiming total default of Rs.2,20,42,190/- (Rupees Two-Crore, Twenty Lakh, Fourty Two Thousand, One Hundred and Ninety only). 3. The Corporate Debtor is an entity incorporated on 21.01.2004 under the Companies Act, 1956 with the Registrar of Companies, Maharashtra, Mumbai having its registered office at 102, Saral Apartment, Vanshree Compound, Marve Road, Malad (W), Mumbai. Therefore, this Bench has Jurisdiction to deal with the present petition. 4. The Date of Default as mentioned in the Petition is 29.02.2020. The Petition is filed on 21.10.2021. 5. The case of the Operational Creditor is as under: a) The Operational Creditor is engaged in the business of manufacturing and selling of aluminium winding wires, aluminium and copper enamelled wires, copper strips etc. The Corporate Debtor is engaged in manufacturing all kinds of transformers in the power industry. b) The Operational Creditor has supplied various materials/goods, including aluminium wires, strips etc. to t....
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....6,487/- against such invoices to the Operational Creditor, till date. f) The Corporate Debtor by way of letter dated 23.07.2021 addressed to Citi Commercial Bank (Which is Citi Bank) has categorically and unequivocally admitted that an amount of Rs.2,07,11,209/- (which is inclusive of the amount of Rs.1,70,66,487/-) is outstanding as per its books and it will clear the same at the earliest. A bare reading of the letter dated 23.07.2021 makes it manifest that the outstanding debt has been "admitted" and there is "no pre-existing dispute" pertaining to the outstanding debt which admittedly remains outstanding as per the books of account of the Corporate Debtor as well. g) The goods supplied to the Operational Creditor in lieu of the outstanding invoices do not suffer from any quality issues. This stems from the fact that the Corporate Debtor has admitted his liability to pay the outstanding dues to the Operational Creditor by way of letter dated 23.07.2021 addressed to Citi Commercial Bank. h) Seeing no result in pursuing the Corporate Debtor to clear the outstanding dues, the Operational Creditor issued a Demand Notice u/s 8 of the Code in Form-3 dated 14.....
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.... found poor as not as per IS standard, enamelling is not done universally on the wire and there were more enamelled on some places and very less coating on some places, variation in thickness and 3 KVA test is conducted on majority of Bobbinand they are not confirming to IS standard. Despite repeated request and reminders to the Operational Creditor, none was deputed to verify the product supplied by them Operational Creditor in view the them Lockdown and Covid-19. 9. The Corporate Debtor further submits that the Operational Creditor vide its email dated 17.09.2020 (Exhibit-6), in terms of acknowledged the said disputes raised by the Corporate Debtor, however, expressed its inability to sort out the same. Rejoinder of the Operational Creditor 10. The Operational creditor filed affidavit in rejoinder thereby denying all the allegations, contentions levelled in affidavit in reply. 11. The Operational Creditor submits that the issue with regard to Jurisdiction of Invoices, he states that pursuant to section 408 of the Companies Act, 2013, this Tribunal has been constituted in different states. In this regard, the Adjudicating Authority, in relation to insolvency resolution....
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....rchases of Rs.3,13,83,249/- were made by the Corporate Debtor to the Operational Creditor in the year 2021 and in lieu thereof, payment of Rs. 26,80,404/- was also done by the Operational Creditor towards the old outstanding, which was duly accepted by the Corporate Debtor. Pertinently, in the emails as well, the Corporate Debtor did not mention/specify any dispute regarding payment of outstanding amount, as sought to be alleged at this belated stage. it is submitted that the orders placed in the year 2021, payments made by the Operational Creditor towards old outstanding and communications exchanged between he parties. Thus, reliance sought to be placed by Corporate Debtor on communications dating back to September, 2020 is merely an afterthought so as to misrepresent the facts before the Hon'ble Tribunal. Even if it is assumed that the Corporate Debtor was dissatisfied with the quality of the products/goods supplied by the Operational Creditor, it would not have continued to place orders and obtain the goods from the Operational Creditor and also pay 15% extra on new orders to reduce the outstanding debt. 15. The Operational Creditor also relied on Mobilox Innovations Private ....
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....ressed to the Operational Creditor submits that the quality of materials supplied were not good and raised a contention that there is a pre-existing dispute as per section 8 (2) of the Code before filing the captioned company petition. 21. Further, the Corporate Debtor after their letters dated 24.06.2020, 20.07.2020, 23.07.2020, 18.08.2020 and 17.09.2020 regarding inferior quality of goods, sent a letter to the CITI Commercial Bank on 23.07.2021 thereby certified that invoices amounting to Rs.2,07,11,209/- raised by Corporate Debtor are outstanding as per their books. 22. The Corporate Debtor vehemently denied the fact that the letter sent to CITI Commercial Bank amount to acknowledgement of debt. On perusal of letter dated 23.07.2021, this Bench observed that the contents written in the letter dated 23.07.2021, clearly shows that the Corporate Debtor acknowledged the invoices as per their books of account as on 23.07.2021 and also promised/confirmed that they will clear the said invoices. Hence, the contention with regard to pre-existing dispute is not sustainable on perusal of letter dated 23.07.2021 and hence rejected. 23. The letter addressed to CITI Commercial Bank i....
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.... Creditor. Thus, it clearly shows that there is a clear debt and default by the Corporate Debtor in repaying the outstanding amount with respect to pending invoices (supra) to the Operational Creditor. 26. On perusal of the records, it is found that the Petition was filed on 21.10.2021 and the Corporate Debtor acknowledges his liability on 23.07.2021, thus Petition is filed well within the prescribed period of Limitation i.e. 3 years as provided under Section 18 of Limitation Act, 1963. 27. After perusal of the material on record, this Bench is of considered view that the there is no reason to deny the Petition under section 9 filed by the Operational Creditor to initiate the CIRP against the Corporate Debtor. 28. On perusal of the documents submitted by the Applicant, it is clear that Operational debt amounting to more than Rs.1,00,00,000/- (Rupees One Crore Only) is due and payable by the Corporate Debtor to the Applicant. There is default by the Corporate Debtor in payment of debt amount. Therefore, we do not have any objection on record against the application filed for initiation of CIRP against the corporate debtor. Hence, the Application filed by the Operational Cre....