M/s. Edge Biotech Pvt. Ltd. vs M/s Angstrom Biotech Pvt. Ltd.

[PER VIRENDRA KUMAR GUPTA, MEMBER (T)]

This application has been filed by Operational Creditor, namely, M/s. EDGE Biotech Pvt. Ltd. under Section 9 of Insolvency & Bankruptcy Code, 2016 (hereinafter referred to as “IBC, 2016”) for initiation of Corporate Insolvency Resolution Process (hereinafter referred to as “CIRP”) against the Corporate Debtor, namely, M/s Angstrom Biotech Pvt. Ltd. for the default amount of Rs. 2,54,506/- (Rupees Two Lacs Fifty Four Thousand Five Hundred Six Only).

The facts, in brief, are that the Corporate Debtor used to purchase products like diagnostic rapid test cassette and other medical disposable packing products from the Operational Creditor. The Operational Creditor supplied the goods to the Corporate Debtor and raised invoices. For the payment of the said amount Corporate Debtor issued a cheque of Rs. 2,00,000/- vide Cheque No. 024396 dated 13.11.2019 which was dishonoured and returned by the Bank with memo dated 15.11.2019 with remark “Payment Stopped By Drawer”. Thereafter, Demand Notice was issued by the Operational Creditor on 05.12.2019 for the default amount of Rs. 2,54,506/- after failed to make the payment of outstanding amount. The Operational Creditor has issued the Demand Notice to the Corporate Debtor at its registered office Vadodara and current office in Alwar Rajasthan. But Demand Notices returned undelivered which was sent at registered address. However, the Demand Notice sent at current address was duly received by the corporate debtor.

Thereafter, Operational Creditor has filed instant application for initiation of CIRP. Learned Counsel for the Operational Creditor appeared and submitted that the Corporate Debtor had purchased the goods from Operational Creditor against which the Operational Creditor raised three invoices viz. Invoice No. EB GT-007/19-20, EB GT-011/19-20 and E B GT-015/19-20 for the total amount of Rs. 2,54,506/- dated 09.05.2019, 17.06.2019 and 24.06.2019 respectively. The Operational Creditor made the various requests and reminders for making the payment from the Corporate Debtor but Corporate Debtor failed to make the payment of outstanding amount. Learned Counsel further submitted that Corporate Debtor had issued a cheque of Rs. 2,00,000/- vide Cheque No. 024396 dated 13.11.2019 which was dishonoured and returned by Bank with a remark “Payment Stopped By Drawer”. The Learned Counsel for the Operational Creditor further submitted that two Demand Notices were issued to the Corporate Debtor, one at registered address and another at current address. The Demand Notice issued on current address was delivered and Demand Notice on registered office was returned undelivered. The Corporate Debtor did not reply to the Demand Notice within ten (10) days. Hence, this application was filed to initiate CIRP against such Corporate Debtor.

We heard Learned Counsel for the Operational Creditor and gone through material available on record. It appears that the Operational Creditor has supplied the goods and raised invoices viz. invoice no EB GT-007/19-20, EB GT-011/19-20 and E B GT-015/19-20 dated 09.05.2019, 17.06.2019 and 24.06.2019 respectively for the total amount of Rs. Rs. 2,54,506/-. The date of default is 09.05.2019. It is noted that for making of outstanding amount, Corporate Debtor issued a cheque of Rs. 2,00,000/- vide Cheque No. 024396 dated 13.11.2019 which was dishonoured on the presentation of clearance with remarks “Payment Stopped By Drawer”. The Operational Creditor issued the Demand Notice to the Corporate Debtor at its registered as well as current address. The Demand Notice served at present address was duly delivered to the Corporate Debtor on 17.07.2020 but Corporate Debtor did not reply to Demand Notice within ten (10) days. The Registry of this Bench has also issued Notice to Corporate Debtor at both addresses. Despite giving sufficient opportunity, the Corporate Debtor chose not to appear and contest the present petition. All the documents annexed with the application prove the debt of Operational Creditor. Moreover, the dishonouring of cheque further strengths the claim of Operational Creditor.

The Operational Creditor did not propose the name of Resolution Professional for appointment of 'IRP' and left to the discretion of this Adjudicating Authority as it is not mandatory for the present application. The Application is defect free and complies with the requirements of Insolvency & Bankruptcy Code, 2016 and regulations made there-under. Hence, we allow the present application and admit the Corporate Debtor in CIRP under Section 9 of IBC, 2016. Accordingly, we pass the following order:

The application is admitted and the moratorium is declared for prohibiting all of the following in terms of Section 14(1) of the Code.

The order of moratorium shall have effect from the date of this order till the completion of the Corporate Insolvency Resolution Process or until this Adjudicating Authority approves the Resolution Plan under sub-section (1) of the Section 31 or passes an order for liquidation of Corporate Debtor Company under Section 33 of the Insolvency & Bankruptcy Code, 2016, as the case may be.

The Operational Creditor has proposed the name of the Interim Resolution Professional (IRP). Therefore, this Adjudicating Authority hereby appoints Mr. Nandish Sunilbhai Vin having Registration No. IBBI/IPA-001/IP-P02117/2020-2021/13270, E-mail id: [email protected] to act as an IRP under Section 13(1) (c) of the CODE.

The IRP shall perform all his functions as contemplated, inter-alia, by Sections 17, 18, 20 & 21 of the Code. It is further made clear that all personnel connected with Corporate Debtor, its Promoter or any other person associated with management of the Corporate Debtor are under legal obligation under Section 19 of the Code extend every assistance and co-operation to the Interim Resolution Professional. Where any personnel of the Corporate Debtor, its Promoter or any other person required to assist or co-operate with IRP, do not assist or Co-operate, IRP is at liberty to make appropriate application to this Adjudicating Authority with a prayer for passing an appropriate order.

This Adjudicating Authority directs the IRP to make public announcement of initiation of Corporate Insolvency Resolution Process (CIRP) and call for submission of claims under Section 15 as required by Section 13(1) (b) of the CODE.

It is further directed that the supply of goods/service to the Corporate Debtor Company, it continuing, shall not be terminated or suspended or interrupted during moratorium period.

The IRP shall be under duty to protect and preserve the value of the property of the 'Corporate Debtor Company' and manage the operations of the Corporate Debtor Company as a going concern as a part of obligation imposed by Section 20 of the Insolvency & Bankruptcy Code, 2016. The Operational Creditor is directed to pay an advance of Rs. 25,000/- (Rupees Twenty Five Thousand Only) to the IRP within two weeks from the date of receipt of this order for the purpose of smooth conduct of Corporate Insolvency Resolution Process (CIRP) and IRP to file proof of receipt of such amount to this Adjudicating Authority along with First Progress Report.

The Registry is directed to communicate a copy of this order to the Operational Creditor, Corporate Debtor and to the Interim Resolution Professional and the concerned Registrar of Companies, after completion of necessary formalities, within seven working days and upload the same on website immediately after pronouncement of the order.

Accordingly, CP (IB) No. 171/9/NCLT/AHM/2020 is allowed and stands disposed of.