Autonix Lighting Industries Private Limited vs Moser Baer Electronics Limited

DR. DEEPTI MUKESH (J)

The present application is filed under section 9 of Insolvency and Bankruptcy Code, 2016 (for brevity ‘IBC, 2016’) read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 (for brevity ‘the Rules’) by Autonix Lighting Industries Private Limited (for brevity ‘Applicant’) with a prayer to initiate the Corporate Insolvency process against Moser Baer Electronics Limited.

The applicant Autonix Lighting Industries Private Limited is a private limited company limited by shares incorporated under the provisions of the Companies Act, 1956 on 18.05.2006 having CIN U74900DL2006PTC14887 as per Master Data of the company. The Company is having authorized capital of Rs. 1,00,000/- and paid up capital of Rs.1,00,000/-. The Applicant is having its office at U-110, Officer No. 7, F/F, Upadhayay Block, Vikas Marg Shyakarpur, Delhi-110092.

The Corporate Debtor is a limited company incorporated under the provisions of the Companies Act, 1956 on 14.09.2006 having CIN U22229DL2006PLC153759 as per Master Data of the company. The Authorised Share Capital of the Corporate Debtor is Rs. 1,10,30,00,000/-and Paid Up Share Capital is Rs. 66,27,00,000/-. The corporate debtor is having its registered office at 43-B, Okhla Industrial Estate Delhi-110020 as per the master data.

It is stated that during the course of business the corporate debtor had placed various purchase orders with the applicant. In pursuance to that, the applicant supplied LED tube lights and drivers to the corporate debtor and had raised various invoices. The corporate debtor was supposed to make the requisite payments against the respective invoices within 45 days from the delivery of the goods as per the terms of arrangements between the applicant and the corporate debtor. However, the corporate debtor had defaulted to make the requisite payments within the said period.

The applicant has stated that on several occasions the applicant issued various emails seeking release of payment against the invoices, however the corporate debtor on one pretext or other kept delaying the payments and did not pay the dues.

The applicant has stated that total debt due and payable by the Corporate Debtor to the applicant is Rs. 6,77,600/- and interest of Rs 22,512.92/-calculated at 18% p.a. totaling to a sum of Rs. 7,00,112.92/- as agreed and described in works contract term is payable to the applicant. A copy of the computation of outstanding operational debt:

The Applicant issued a Demand Notice under section 8 of the Code, 2016 dated 26.04.2019 in Form 4 as per the I & B Code, 2016 (Under Rule 5 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016). The demand notice was duly received by the corporate debtor on 04.05.2019.

That on receipt of the demand notice, the corporate debtor issued a reply dated 09.05.2019 to the applicant acknowledging and confirming that the operational debt was due and payable by the corporate debtor and stated that due to unavailability of cash flows and precarious financial position of the company, the corporate debtor was unable to discharge the operational debt.

Hence the applicant has filed present Application under section 9 of IBC, 2016 and served the copy as per the directions and order of this Hon’ble Bench, which is duly received by the Corporate Debtor and the affidavit of service to that effect is filed by the applicant.

The Corporate Debtor has filed a reply to the application dated 01.07.2019 thereby admitting its liability by asserting that the corporate debtor has been facing financial crunch for some time and therefore required time to pay off the operational dues of the applicant.

Hence a perusal of the replies of both the parties clarifies that there is an admitted default in repayment of the operational debt by the the corporate debtor, and therefore fit for admission.

The registered office of corporate debtor is situated in Delhi and therefore this Tribunal has jurisdiction to entertain and try this application.

The default in payment of operational debt owned and debt became payable from the date of the invoice dated 04.02.2019 raised by the Applicant. Hence, the claim of the applicant is within limitation and the debt is not time barred.

In the given facts and circumstances, the present application is complete and the Applicant is entitled to claim its dues which are un-controverted by the Corporate Debtor, establishing the default in payment of the operational debt beyond doubt. Hence, the present application deserves to be admitted.

Applicant has named the Interim Resolution Professional (IRP), as Mr. Hemant Sharma having registration number IBBI/IPA-002/IP-N00015/2016-17/10019 and E-Mail ID hemant78sharma@yahoo.com, duly registered with Insolvency and Bankruptcy Board of India, as the Interim Resolution Professional, whose certificate of registration is also annexed with specific consent filed in Form 2 of Insolvency and Bankruptcy Board of India (Application to Adjudicating Authority) Rule, 2016 making all disclosures as required under IBBI (insolvency Resolution Process for Corporate Persons) Regulations, 2016.

The Interim Resolution Professional shall perform all his functions contemplated, inter alia, by Sections 15,17,18,19,20 & 21 of the Code and transact proceedings with utmost dedication, honesty and strictly in accordance with the provisions of the ‘Code’, Rules and Regulations. It is further made clear that all the personnel connected with the Corporate Debtor, its promoters or any other person associated with the Management of the Corporate Debtor are under legal obligation under Section 19 of the Code to extend every assistance and cooperation to the Interim Resolution Professional as may be required by him in managing the day to day affairs of the ‘Corporate Debtor’. In case there is any violation, the Interim Resolution Professional would be at liberty to make appropriate application to this Tribunal with a prayer for passing an appropriate order. The Interim Resolution Professional shall be under duty to protect and preserve the value of the property of the ‘Corporate Debtor’ as a part of its obligation imposed by Section 20 of the Code and perform all his functions strictly in accordance with the provisions of the Code, Rules and Regulations.

As a sequel to above, the application is admitted in terms of Section 9(5) of IBC, 2016 and moratorium as envisaged under the provisions of Section 14(1) as extracted hereunder shall follow in relation to the Corporate Debtor prohibiting all of the following:

In terms of above order, the Application stands admitted in terms of Section 9(5) of IBC, 2016. A copy of the order shall be communicated to the Applicant as well as to the Corporate Debtor above named by the Registry. In addition, a copy of the order shall also be forwarded to IBBI for its records. Further the IRP above named be also furnished with copy of this order forthwith by the Registry.