AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2022 (11) TMI 931
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....s Limited('Corporate Debtor'). 3. The present Petition was filed on 07 January, 2019 before this Adjudicating Authority. The total amount claimed in default is Rs.91,01,400/- (Rupees Ninety One Lakh One Thousand Four Hundred only)along with interest @18% per annum on and from 14 April, 2018 till date. The date of default is stated to be as on 14 April, 2018. 4. In part II of the Petition the authorized share capital of the Corporate Debtor is Rs.3,85,10,00,000/- (Rupees Three Hundred Eighty Five Crore Ten Lakh only) with subscribed share capital of Rs.23,91,42,178/- (Rupees Twenty Three Crore Ninety One Lakh Forty Two Thousand One Hundred Seventy Eight only). 5. Submissions by the Ld. Counsel appearing on behalf of the Operational Creditor. 5.1 The Corporate Debtor approached the Operational Creditor for effecting supply of CS Bogie as per drawing no. WD - 07067 - S/01 by placing purchase order upon the Operational Creditor. In pursuance of such purchase order dated 25 September, 2017, purchase order no. CIMM/17-18/000568 [at page 15 of the Petition]and Research Designs and Standards Organization ('RDSO')approved inspection request form, the Operational Creditor manufactured th....
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....orate Debtor for supplies of 44 bogies in the second tranche, the Operational Creditor issued a notice dated 31 October, 2018 seeking for payment of a sum of Rs. 94,05,206 along with the interest @ 18% per annum[Pages 98 - 103 of the Petition]. 5.9 The Corporate Debtor had, after the issuance of the said notice dated 31 October, 2018 replied to the same by reiterating its claim for the cancelled orders[Reply letter dated 09 November, 2018, at pages 104 - 107].By its letter dated 13 November, 2018 the Operational Creditor had requested the Banker of the Corporate Debtor to honor the said LoC which the Bankers did not accede to. It was also intimated by IndusInd bank that the Corporate Debtor has instructed them on such non acceptance of the Letter of Credit[Page 108 of the Petition]. 6. Submissions by the Ld. Counsel appearing on behalf of the Corporate Debtor. 6.1 This proceeding is a counterblast to a proceeding initiated by the Corporate Debtor against the Operational Creditor under section 9 of the Code, which is pending before the coordinate Mumbai Bench of NCLT (being C.P. 4786 of 2018).There exist a serious dispute between the Corporate Debtor and Operational Creditor pert....
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....the Operational Creditor. In fact, in the instant petition the Operational Creditor has admitted that the Corporate Debtor has raised a claim against it on account, inter alia, of Refund of Advance and Liquidated Damages by its letter dated 09 October, 2018 [Pages 87-89 of the Petition]. The Corporate Debtor had raised such claim prior to issuance of the notice under section 8 of the Code. 6.8 The Hon'ble Supreme Court of India has in the judgment reported in Union of India v. Karam Chand Thapar & Bros. (Coal Sales) Ltd. & Ors. [(2004) 3 SCC 504] [para 18] held that the principles of legal set off embodied in Order VIII rule 6 of the Code of Civil Procedure, 1908 can be applied in relation to enforcement of money claims even in writ proceedings in absence of specific provision of law. 6.9 As the Insolvency and Bankruptcy Code, 2016 also does not provide for any rule of procedure to deal with a claim in the nature of a legal set off made by a Corporate Debtor contending that a debt alleged to be due by an Operational Creditor is not actually due or payable or enforceable, the principles of legal set off embodied in Order VIII rule 6 of the Code of Civil Procedure, 1908 must simila....
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....-Karam Chand Thapar & Bros. (Coal Sales) Ltd. & Ors. (Supra), the Hon'ble Supreme Court has made it comprehensible that; "18. What the rule deals with is legal set-off. The claim sought to be set-off must be for an ascertained sum of money and legally recoverable by the claimant. What is more significant is that both the parties must fill the same character in respect of the two claims sought to be set-off or adjusted. Apart from the rule enacted in Rule 6 abovesaid there exists a right to set-off, called equitable, independently of the provisions of the Code. Such mutual debts and credits or cross-demands, to be available for extinction by way of equitable set-off, must have arisen out of the same transaction or ought to be so connected in their nature and circumstances as to make it inequitable for the Court to allow the claim before it and leave the defendant high and dry for the present unless he files a cross-suit of his own. When a plea in the nature of equitable set-off is raised it is not done as of right and the discretion lies with the Court to entertain and allow such plea or not to do so. 19. In Bhupendra Narain Singha Bahadur Vs. Bahadur Singh and Ors. [AIR 1952 S....
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....tions, 2016. e) Mr. Sri Ram Mittal registration number IBBI/IPA-001/IP-P- 02276/2021-2022/13677, email; [email protected], is hereby appointed as Interim Resolution Professional (IRP) of the Corporate Debtor to carry out the functions as per the Code subject to submission of a valid Authorisation of Assignment in terms of regulation 7A of the Insolvency and Bankruptcy Board of India (Insolvency Professional) Regulations, 2016. The fee payable to IRP or the RP, as the case may be, shall be compliant with such Regulations, Circulars and Directions as may be issued by the Insolvency & Bankruptcy Board of India (IBBI). The IRP shall carry out his functions as contemplated by sections 15, 17, 18, 19, 20 and 21 of the Code. f) During the CIRP period, the management of the Corporate Debtor shall vest in the IRP or the RP, as the case may be, in terms of section 17 of the Code. The officers and managers of the Corporate Debtor shall provide all documents in their possession and furnish every information in their knowledge to the IRP within one week from the date of receipt of this Order, in default of which coercive steps will follow. g) The IRP/RP shall submit to this Adj....