TaxTMI 
TaxTMI 
2023 (7) TMI 772
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....lant : Ms. Ritika Gambhir Kohli , Ms. Akshaya Ganpath , Advocates For the Respondents : Mr. Mohak Sharma , Mr. Sajal Jain, and Mr. Supriyo Banerjee , Advocates JUDGMENT [ Per. Dr. Alok Srivastava , Member ( Technical ) ] The Present Appeal has been filed under Section 61 of the Insolvency and Bankruptcy Code, 2016 (in short "IBC") assailing the order dated 07.06.2022 (in short "Impugned Order") passed by the Adjudicating Authority (NCLT, New Delhi) in Company Application C.A. No. 1682/2019 filed by Shri Debashis Nanda, Liquidator of J.V. Strips Limited in C.P. (IB) No. 452/ND/2017. 2. The Appellant is aggrieved by the Impugned Order in that certain transactions of the Appellant with the Corporate Debtor J.V. Strips Limited have been he....
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....ed to be given in the ordinary course of business, and therefore the adjudication in the Impugned Order that these amounts relate to undervaluing of the transaction between Corporate Debtor and the Appellant is not correct, and on this account the Impugned Order should be set aside and only a direction be issued for an amount of Rs.7,764.60 which remains as outstanding, to be payable to the Corporate Debtor by the Appellant. 7. We heard the oral arguments advanced by the Learned Counsels for the Appellant and the Liquidator / Respondent and also perused the record with their able assistance. 8. The Learned Counsel for Appellant has argued that the ledger account maintained by the Appellant regarding transactions with the Corporate Debtor ....
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....n therein were done in the ordinary course of business and discussion of issues and decision about poor quality of raw material and discounts due to processing cost and rate difference were also done in connection with the ordinary course of business. Therefore, the order passed by the Adjudicating Authority whereby the Appellant has been asked to refund an amount of Rs. 31,00,475.00 in the bank account of the Corporate Debtor is not correct and should be set aside. 10. The Learned Counsel for Respondent / Liquidator has argued that the Corporate Insolvency Resolution Process (in short "CIRP") against the Corporate Debtor commenced on 13.04.2018 and later order for liquidation of the Corporate Debtor was passed on 18.02.2019. He has argued....
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....ther as per Section 45(2)(b) they are hugely undervalued and have not taken place in the ordinary course of business of the Corporate Debtor but to provide undue benefit to the Appellant and to the detriment of the Corporate Debtor. 12. Regarding the argument that the above mentioned transactions were not done in the ordinary course of business, the Learned Counsel for Liquidator has pointed out that the supplies of raw material was made starting from September 2017 and the Appellant made payments in the running account of the Corporate Debtor for raw material supplies, with the last payment of Rs. 16,36,223.40 made through RTGS on 29.01.2018, while the application for initiation of CIRP was under consideration of the Adjudicating Authorit....
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....all, Sector 10, Rohini, Delhi-85 (2017-18)-F Date Fro m VR. No. Particulars Deb it (Rs. Credit (Rs.) Dr / Cr Balance (Rs.) 29.01. 18 B4 129 01 RTGS No. IDIBR52018012915 641581 16,36,22 3.40 Dr 31,00,47 4.60 31.03. 18 J 331 70 Discount allowed @ 5% of C/Y Sale 6,19,273. 00 Dr 24,81,20 1.60 05.04. 18 J 405 03 Amt. Allowed due to quality problem 13,76,32 0.00 05.04. 18 J 405 03 Amt. Allowed due to labour and other charges for material problem 10,00,96 0.00 05.04. 18 J 405 06 Rate Diff. allowed to Technico Industries Ltd. 7,15,430. 00 Cr 6,11,508. 40 14. As against the ledger account submitted by ....
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....Debtor would not have any ostensible reason not to record the entries relating to Appellant incorrectly and further no reason has been given by the Appellant why this Corporate Debtor's Ledger Account should not be relied on. We therefore, place reliance on the ledger account produced by the Liquidator which is attached at pg. 206 of the appeal paper book. 17. The main issue in contention is whether the abovementioned discounts were given by the Corporate Debtor for the benefit of the Appellant in the ordinary course of business. In this regard, we look at the recording of the reply of the Appellant in paragraph 5 of the Impugned Order wherein the Appellant has claimed that such discounts were mutually decided between the Appellant and the....