AI Structured Summary
Not yet generated for this judgment
Judgment
The above Company Petition is filed by KATYAYAN MERCANTILE AND TRADING PVT.LTD hereinafter called as Operational Creditor seeking to initiate of Corporate Insolvency Resolution Process (CIRP) against ADDITRI TRADERS PRIVATE LIMITED called as Corporate Debtor by invoking the provisions of Section 9 Insolvency and Bankruptcy code (hereinafter called “Code” read with rule 6 of Insolvency & Bankruptcy (Application to Adjudication Authority) Rules, 2016 for a Resolution of Operational Debt of Rs. 41,01,360/ (Rupees Forty One Lakhs One Thousand Three Hundred and Sixty Only) Principle amount being Rs. 40,33,400/-(Rupees Forty Lakhs Thirty Three Thousand and Four Hundred Only) and interest @ 5% per annum i.e. Rs. 67960/-(Rupees Sixty Seven Thousand Nine Hundred and Sixty only).
BRIEF FACTS OF THE CASE
The Operational Creditor submits that the Corporate Debtor is a company incorporated under the Companies Act, 2013, it was incorporated on 13.12.2016.
The Operational Creditor had supplied the material to the Corporate Debtor in the month of March, 2019 however the Corporate Debtor has defaulted in the payment of Rs. 41,01,360/ (Rupees Forty One Lakhs One Thousand Three Hundred and Sixty Only) Principle amount being Rs. 40,33,400/-(Rupees Forty Lakhs Thirty Three Thousand and Four Hundred Only) and interest @ 5% per annum i.e. Rs. 67960/-(Rupees Sixty Seven Thousand Nine Hundred and Sixty only) calculated from the due date i.e. 20.04.2019 to 16.08.2019 towards material supplied by the Operational Creditor in the month of March, 2019 alongwith interest @5% p.a. from 17.08.2019 till the date of realization.
The operational creditor vide its letter dt. 10.04.2019 and 17.04.2019 sent reminders to the Corporate Debtor for repayment of the unpaid balance of Rs. 40,33,400/- payable within two days from the receipt of the said letter along with interest @ 5% per annum on the outstanding balance.
Thereafter, the Corporate Debtor vide its letter dated 20.04.2019 has sought 15 days time from the Operational Creditor in order to make arrangement for the repayment of outstanding balance.
The operational creditor vide its letter dt. 29.04.2019 again reminded the Corporate Debtor for payment of Rs. 40,33,400/-towards the material supplied by the Operational Creditor in pursuant to the purchase order dt. 27.03.2019.
The Operational Creditor once again vide its letter dated 13.05.2019 demanded from the Corporate Debtor payment of outstanding balance of Rs. 40,47,213/- (Rupees Forty Lakhs Forty Seven Thousand Seven Hundred Sixty Six Only) Principle amount being Rs. 40,33,400/- (Rupees Forty Lakhs Thirty Three Thousand Four Hundred only) and interest for a period of 25 days from 20.04.2019 to 15.05.2019.
The Corporate Debtor vide its letter dt. 20.05.2019 has sought for one month time to repay a sum of Rs. 40,47,766/- (Rupees Forty Four Lakhs Forty Seven Thousand Seven Hundred Seventy six only) including interest of Rs. 14,366/-to the operational Creditor as on due on 20.04.2019. Further, vide letter dt. 24.05.2019 the Operational Creditor once again demanded sum of Rs. 40,52,186/-towards the material supplied. The Corporate Debtor vide its letter dt. 20.06.2019 once again sought one month time for repayment.
Hence in view of the above correspondence and non payment by the Corporate Debtor, the Operational Creditor issued Demand Notice dated 16.08.2019 was issued by the Operational Creditor to the Corporate Debtor demanding a sum of Rs. 41,01,036/-(Rupees Forty one Lakhs One Thousand Three Hundred and Sixty only) Principle Amount Being Rs. 40,33,400/- (Rupees Forty Four Lakhs Thirty three thousand and Four Hundred only).
The copy of the Purchase order dated 27.03.2019 is annexed as Exhibit B in the petition. The copy of invoice is attached at page 56 of the petition. The Operational Creditor has submitted the ledger of the Corporate Debtor which is at page 55 of the petition.
Findings/Conclusion:
Heard the Ld. Counsel for the Operational Creditor and perused the records.
It is the case of the Operational Creditor that the Operational Creditor had supplied goods to the Corporate Debtor vide the Purchase Order dated 27.03.2019. Pursuant to the said supply, the Operational Creditor raised invoice dated 30.03.2019 for an amount of Rs.40,33,400/-. The said invoice was acknowledged by the Corporate Debtor.
It is observed by the Bench that, the Operational Creditor vide its letters dated 17.04.2019, 29.04.2019, 13.05.2019 and 24.05.2019 sent reminders to the Corporate Debtor for payment of outstanding dues to the Corporate Debtor. The Corporate Debtor replied to the above-mentioned letters of the Operational Creditor, vide its letters dated 20.04.2019, 20.05.2019 and 20.06.2019 and sought further time for repayment of the dues. However, the Corporate Debtor failed to honour the above-mentioned reply sent by it.
It is noticed from the Petition that:
There is unequivocal admission of the liability on the part of the Corporate Debtor in its Balance Confirmation Letter dated 04.04.2019 wherein the Corporate Debtor has admitted the outstanding amount of Rs.40,33,400/- due and payable to the Operational Creditor, which is at p.66 of the Petition.
It is further observed by the Bench that, the Corporate Debtor has neither appeared in the matter nor filed its Affidavit-in-reply in the matter after several opportunities in the matter. The matter was listed on 23.09.2019, wherein the Court Notice was ordered against the Corporate Debtor to appear and file its reply in the matter. The matter was listed on several occasions wherein this Bench had given several opportunities to the Corporate Debtor to appear and file its reply in the matter. In view of the above, the Corporate Debtor, vide order dated 31.10.2022 of this Bench set ex-parte. Hence, today i.e. 15.06.2023, the matter is proceeded ex-parte.
After observing the material on record, this Bench is of the opinion that there is “debt” and “default” on the part of the Corporate Debtor and the Petition filed by the Operational Creditor under Section 9 of Code is deserves to be admitted.
ORDER
a. The above Company Petition No. (IB) 3238 (MB)/2019 is hereby allowed and initiation of Corporate Insolvency Resolution Process (CIRP) is ordered against Additri Tranders Private Limited.
b. Since the Operational Creditor has not suggested the name of IRP to perform the duties of the Interim Resolution Professional (IRP) in the petition, this Bench is appointing the IRP from the list furnished by the Insolvency and Bankruptcy Board of India (IBBI). This Bench hereby appoints Mr. Sachin Jain, Insolvency Professional, Registration No: IBBI/IPA-001/IP-P02005/2020-2021/13453 as the interim resolution professional to carry out the functions as mentioned under the Insolvency & Bankruptcy Code, 2016.
c. The Operational Creditor shall deposit an amount of Rs.3,00,000/- (Rupees Three Lakhs Only) towards the initial CIRP costs by way of a Demand Draft drawn in favour of the Interim Resolution Professional appointed herein, immediately upon communication of this Order. The IRP shall spend the above amount only towards expenses and not towards his fee till his fee is decided by COC.
d. That this Bench hereby prohibits 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; the recovery of any property by an owner or lessor where such property is occupied by or in the possession of the Corporate Debtor.
e. That the supply of essential goods or services to the Corporate Debtor, if continuing, shall not be terminated or suspended or interrupted during moratorium period.
f. That the provisions of sub-section (1) of Section 14 shall not apply to such transactions as may be notified by the Central Government in consultation with any financial sector regulator.
g. That the order of moratorium shall have effect from the date of pronouncement of this order till the completion of the corporate insolvency resolution process or until this Bench approves the resolution plan under sub-section (1) of section 31 or passes an order for liquidation of corporate debtor under section 33, as the case may be.
h. That the public announcement of the corporate insolvency resolution process shall be made immediately as specified under section 13 of the Code.
During the CIRP period, the management of the corporate debtor will vest in the IRP/RP. The suspended directors and employees of the corporate debtor shall provide all documents in their possession and furnish every information in their knowledge to the IRP/RP.
j. Registry shall send a copy of this order to the Registrar of Companies, Mumbai, for updating the Master Data of the Corporate Debtor.
k. Accordingly, this Petition is admitted.
l. The Registry is hereby directed to communicate this order to both the parties and to IRP immediately.