2020 (2) TMI 1707

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.... Code, 2016 ('IBC' in short) before the Adjudicating Authority (National Company Law Tribunal), New Delhi Bench vide (IB) No. 552/(ND)/2017 against the Respondent - 'Corporate Debtor'. 2. It appears that the Respondent had also filed Application under Section 9 of IBC arising with regard to some transaction between the parties having (IB)-553(ND)/2017. The Appellant clamed in the application under Section 9, operational dues (Annexure A12-Page 80 at page-99) Rs. 13,76,36,931/-. The Respondent ('Corporate Debtor') in its cross case had claimed Rs. 2,43,34,100/- as principal amount together with interest claiming liability of more than Rs. 4 crores from the present Appellant. The Adjudicating Authority heard both the parties in cross cases....

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....31.50/- The Appellant claims that by reply dated 25th September, 2017 (Annexure A11 - Page 73), the Respondent made false claims. 4. It is claimed in the Appeal and argued that parties had reconciled their accounts as on 31st December, 2015 and Respondent had agreed to the dues & issued Credit Notes worth Rs. 24,86,67,626/- towards pending claims of certain qualities and quantities, issues of the material, which had been supplied for preceding many years. The Credit Notes were issued in favour of the Appellant. According to the Appellant, after adjustment of the Credit Notes in full, in December, 2015, it was agreed and reconciled that balance amount payable to the Respondent by the Appellant was Rs. 2,46,34,100/- and Credit Notes were i....

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....special offer keeping in view of the long-term business relationship between the Parties. The aforesaid Credit Notes were never issued by SMW against any outstanding amount due and payable by SMW to Indo." 6. The communication further referred to understanding between the parties and added that: - "In spite of the discount/ benefits offered to Indo in the form of Credit Notes (discount on subsequent purchase of Products), it has failed to honor its commitment towards purchasing of substantial quantity of Products from SMW. It has not placed any order against the said Credit Notes issued by SMW to Indo in the financial years 2016- 17 and 2017-18. Therefore, the aforesaid Credit Notes could not be honored or set off against the Pr....

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....s were in the nature of discount/ benefit offered by SMW to Indo for subsequent purchases, at competitive rates vis-à-vis market rates, as a special offer, keeping in view their long-standing business relationship. The aforesaid Credit Notes were never issued by SMW against any outstanding amount due or payable by SMW to Indo. As per their case, it was duly conveyed by SMW that only on their request regarding the adjustment, the amount under the Credit Notes would be set off against substantial quantities of Products to be purchased by Indo from SMW in 3 financial years 2015-16, 2016-17 and 2017-18. Pursuant to such understanding, SMW and Indo calculated the outstanding amount of Rs. 2,46,34,100/- as due to SMW as on December 31, 201....