Global New Energies & Technologies vs Diversification Agriculture Producer Company Limited

The Applicant namely, Global New Energies & Technologies (hereinafter, Operational Creditor) is having its registered office at A-902, Saraswati Riverview Apartment, Gomti Nagar Extension, Gomti Nagar, Lucknow, U.P-226010.

The Corporate Debtor namely, M/s Diversification Agriculture Producer Company Limited is a Farmer Producer Organization and is registered with RoC Kanpur. It is a dealer of the products of the Operational Creditor.

As stated in the application that the Operational Creditor entered into an agreement with the Corporate Debtor for distribution of the products such as solar sprayer, battery operated sprayers and agriculture laser land levelers. After completion of the contractual requirements and supply of products as agreed, the Operational Creditor raised various GST Invoices on different dates for the supply of said products. Copies of Invoices have been annexed as Annexure-4 with the Application. Details of all the GST Invoices raised on various dates are enumerated below in the table:-

It is also stated in the application that the Corporate Debtor delayed the payments of the bills raised on different dates for the supply of solar sprayer, battery operated sprayers and agriculture laser land levelers. Bills for a total sum of Rs. 1,46,74,112 were raised which was due for payment by the Corporate Debtor. The Operational Creditor received only Rs. 43,06,900/- towards the payment of the bills raised. It is mentioned in Part-IV of the application that the principal amount due is of Rs. 1,03,67,212 (Rupees One Crore Three Lakhs Sixty Seven Thousand Two Hundred and Twelve only) along with interest @ 12% p.a which amounts to Rs. 46,65,245 till June 2022 for 30 months.

It is also stated in the application that the Corporate Debtor has acknowledged and accepted its debt and asked to remove the defects with respect to equipments which was cured by the Operational Creditor and further transactions between the parties continued.

It is further stated by the Applicant/Operational Creditor that the Corporate Debtor has once again acknowledged its liability for payment of debt amount in the ledger account maintained for supply of materials of the Operational Creditor vide an email dated 29.08.2019.

Furthermore, it is stated in the application that after receiving no response from the Corporate Debtor regarding payment of the outstanding debt, the Operational Creditor served demand notice dated 11.03.2022 to the Corporate Debtor for payment of the operational debt in terms of section 8(1) of the I & B Code, 2016. Copy of demand notice has been annexed as Annexure -1 with the Application.

The total amount of debt as mentioned in Part –IV of the application is Rs. 10367212/- (Rupees One Crores Three Lakhs Sixty Seven Thousand Two Hundred and Twelve Only) as on 23.10.2019 toward the supply of Solar Sprayer, Battery Operated Sprayers and Agriculture Laser Land Levelers on various dates.

The application filed by the Operational Creditor under 9 of the Insolvency & Bankruptcy Code, 2016 for initiating the Corporate Insolvency Resolution Process against the Corporate Debtor i.e. Diversification Agriculture Producer Company Limited is hereby admitted.

We hereby declare a moratorium u/s 14 and public announcement in accordance with Sections 13 and 15 of the I & B Code, 2016.

This Adjudicating Authority hereby appoints Mr. Ankit Agrawal as IRP as discussed in para 07 above.

The IRP shall cause a public announcement of the initiation of the Corporate Insolvency Resolution Process and call for the submission of claims under Section 15. The public announcement referred to in clause (b) of sub-section (1) of Section 15 of the Insolvency & Bankruptcy Code, 2016 shall be made immediately.

Moratorium under Section 14 of the Insolvency & Bankruptcy Code, 2016 prohibits the following: -

The institution of suits or continuation of pending suits or proceedings against the Corporate Debtor including execution of any judgment, decree or order in any court of law, tribunal, arbitration panel or other authority; Transferring, encumbering, alienating or disposing of by the Corporate Debtor any of its assets or any legal right or beneficial interest therein;

Any action to foreclose, recover or enforce any security interest created by the Corporate Debtor in respect of its property including any action under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (54 of 2002);

The recovery of any property by an owner or lessor where such property is occupied by or in the possession of the Corporate Debtor.

The supply of essential goods or services rendered to the Corporate Debtor as may be specified shall not be terminated, suspended, or interrupted during the moratorium period.

The provisions of sub-section (1) of Section 14 of I & B Code, 2016 shall not apply to such transactions as may be notified by the Central Government in consultation with any financial sector regulator.

The IRP shall after collation of all the claims received against the Corporate Debtor and the determination of the financial position of the Corporate Debtor constitute a Committee of Creditors and shall file a report certifying the constitution of the Committee to this Tribunal on or before the expiry of thirty days from the date of his appointment, and shall convene the first meeting of the Committee within seven days of filing the report of Constitution of the Committee.

The Committee of the Creditors shall appoint a Resolution Professional as per section 22 of I & B Code, 2016. A monthly progress report shall be filled by the Resolution Professional providing the details of work done in respect of completing the CIRP within the time line as prescribed under the provision of section 12 of the I & B Code, 2016.

The order of moratorium shall have effect from the date of admission till the completion of the Corporate Insolvency Resolution process.

However, at any time during the Corporate Insolvency Resolution Process period, if the Adjudicating Authority approves the resolution plan under sub-section (1) of Section 31 or passes an order for liquidation of the Corporate Debtor under Section 33, the moratorium shall cease to have effect from the date of such approval or liquidation order, as the case may be.

The Interim Resolution Professional should convene a meeting of the Committee of Creditors and submit the resolution passed by the Committee of Creditors and shall identify the prospective Resolution Applicant in accordance with I & B Code, 2016 read with the relevant rules & regulation framed thereunder.

The Operational Creditor/Applicant is directed to deposit Rs.1,00,000/- (One Lakh Only) with the IRP appointed hereinabove within two weeks from this order. IRP can claim the preliminary expenses and fees subject to approval by the CoC and after the constitution of the CoC.