M/S Supreme Packaging Industries vs M/S Rayban Foods Private Limited

Per Ms. Sumita Purkayastha Member (Technical)

This is a petition filed by M/S Supreme Packaging industries invoking the provision of Section 9 of Insolvency and Bankruptcy Code, 2016 ("the Code") against the Respondent (M/S Rayban Foods Private Limited) for initiating Corporate Insolvency Resolution Process ("CIRP") against the Respondent.

The Applicant is a Partnership firm having Registration No. MBD-4293. The Corporate Debtor approached the Applicant for the purchase of plastic packaging materials, straping roll, sheets, strapin sheets, shrink bags, HM shrink, plastic material shrink for selling of its products. As per agreement between Applicant and Corporate Debtor, any delay in payments after 30 days from the date of the invoice shall attract the penal interest @18% per annum. On the basis of such arrangement, the Applicant had duly supplied and delivered the agreed materials at Hapur as and when ordered by the Corporate Debtor. It was averred by the Applicant that no complaint was ever raised by the Corporate Debtor with regard to the time bound service of Applicant and also quality of goods so procured from the Applicant.

Accordingly, the Applicant raised the following invoices:

The Corporate Debtor made only seven payments till 20.04.2017 for a total amount of Rs. 39,80,036/- out of the raised invoice amounts of Rs. 48,71,970.60/-. The Corporate Debtor is in default of making payment of remaining amount of Rs. 8,91,934.60/-. Several reminders were made by the Applicant for making the payment. As per averment, the Corporate Debtor paid taxes to the Commercial Tax Department on the goods procured from the Applicant whereby the Corporate Debtor acknowledged the receipts of the invoices raised by the Applicant. The Corporate Debtor has failed to make the payment to the Applicant.

The total amount of debt due and payable id Rs. 8,91,934.60/- with further interest @ 18% p.a. i.e. Rs. 3,66,769.59/-, till 23.06.2019.

Demand notice dated 01.07.2019 under Section 8 of the Insolvency and Bankruptcy Code, 2016 was sent by the Applicant at the registered office of the Corporate Debtor as per the master data available in the website of Ministry of Corporate Affairs as well as at the other offices of the Corporate Debtor and its directors. The service though registered AD is served and affected.

As per the averments of the Petitioner, the Corporate Debtors did not make the payment against the defaulted amount. None appeared on behalf of the Corporate Debtor to oppose the prayer made by the petitioner, hence proceedings were posted for ex-parte hearing on 16.10.2019.

The Cause of Action arose on 20.04.2017 and the present petition being filed in August, 2019 is within the limitation, being within three years from the date of the cause of action.

It has been observed that the demand notice was served at the registered office of the Corporate Debtor at its respective address by speed post AD. Also, the amount of default is more than Rs. 1,00,000/-. Considering the circumstances this Adjudicating Authority is inclined to admit this petition and initiate CIRP of the Respondent. Accordingly, this petition is admitted. A moratorium in terms of Section 14 of the Insolvency & Bankruptcy Code, 2016 shall come into effect forthwith staying:-

Further:

The Operational Creditor has proposed the name of the IRP. Accordingly, we appoint Mr. Vijay Kumar, an Insolvency Professional, registration no. IBBI/IPA-002/IP-N00652/2018-19/12020 [email protected] duly empanelled with the IBBI as the IRP. The written consent letter of the proposed IRP is annexed at page no. 306. He is directed to take such steps as are mandated under the Code, more specifically under Sections 15, 17, 18, 20 and 21 and shall file his report before the Adjudicating Authority.

The Operational Creditor is directed to deposit a sum of Rs. 2 lakhs to meet the immediate expenses of IRP. The same shall be fully accountable by the IRP and shall be reimbursed by the CoC, to the Operational Creditor to be recovered as CIR costs.

Petition is therefore admitted.