TaxTMI 
TaxTMI 
2025 (7) TMI 1009
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....ocates for R-1. Mr. Shailendra Singh, Mr. Abhyuday Dhasmana, Advocates for HDFC Bank JUDGMENT Per : Justice Rakesh Kumar Jain : This appeal is against the order dated 08.12.2022 by which an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 (in short 'Code') by PPG Asian Paints Pvt. Ltd. (Financial Creditor) against Sidhi Vinayak Vehicles Pvt. Ltd. (Corporate Debtor) for the resolution of an amount of Rs. 42,35,000/- has been admitted and Rajan Sharma was appointed as the IRP. 2. The Suspended Director of the CD has challenged the impugned order by the present appeal in which at the time of issuance of notice on 18.01.2023 it was directed that no further steps shall be taken in pursuance of the impugned order....
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....and mentioned the date of default as 01.04.2019. 6. The agreement between the parties dated 21.03.2018 which is the basis of their relationship and promissory note dated 21.03.2018 executed by the CD in favour of the Financial Creditor for return of Rs. 35 Lakh alongwith interest @ 12% p.a were attached. 7. The Tribunal issued notice in the petition to the CD on 04.03.2020 which was duly served but nobody appeared on behalf of the CD nor any reply was filed. Consequently, the CD was proceeded against ex-parte on 17.03.2022. 8. The Tribunal heard the case of the Financial Creditor ex-parte and decided the issue of limitation in its favour and in so far as the issue of debt and default is concerned, it was held that the Financial Creditor ....
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.... is sufficient to establish that the amount of Rs. 35 Lakh was a financial debt and not an operational debt. It is further submitted that in terms of the agreement, the CD had agreed to procure material of Rs. 1 Cr. during the four year tenure of the agreement and upon failure of the CD in non-compliance of the agreement, particularly clauses 4 and 5, the Financial Creditor issued a legal notice in terms of clause 7(d)(i) calling upon the CD to pay Rs. 35 Lakh @ 12% interest p.a as agreed upon. It is further submitted that CD, in response to the legal notice, gave and undertaken regarding purchasing the goods as acknowledged by it under the agreement but the amount of Rs. 35 Lakh advanced by the Financial Creditor was not for purchasing the....
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....ion 7, did not choose to appear before the Tribunal nor filed the reply to the said petition. However, the relationship between the CD and the Financial Creditor is based upon the agreement. 17. The agreement was executed between the parties in which it was clearly mentioned that "the body shop proposes to substantially expand its business and being completely satisfied with the quality of refinish products supplied by PPGAP, the body shop is desirous of entering into an agreement with PPGAP to secure timely delivery of the PPGAP refinish products at the body shop services canters. 4. The body shop has approaching PPGAP for financial contribution for the purpose of sales promotions and procurement of specialized painting equipment's for th....