M/s. Vasudha Security and Facility Management Pvt Ltd vs M/s. Bio Ethanol Agro Industries Limited

This Petition is filed by M/s.Vasudha Security and Facility Management Pvt Ltd, ("hereinafter referred to as Operational Creditor") seeking initiation of Corporate Insolvency Resolution Process in respect of M/s. Bio Ethanol Agro Industries Limited ("hereinafter referred to as Corporate Debtor") alleging that the Corporate Debtor committed default in making payment of Rs.33,09,360/-which includes interest @18% per anum, towards invoices raised against the services. Hence petition under Section 9 of Insolvency and Bankruptcy Code, 2016 (referred to as “Code”) read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 seeking admission of the Petition, initiation of Corporate Insolvency Resolution Process (CIRP), granting moratorium and appointment of Insolvency Resolution Professional (IRP) as prescribed under the Code and Rules thereon.

The learned Counsel for the Operational Creditor submits that Petitioner is engaged in the business of supplying security services and security personal to various industries across India and the Corporate Debtor is a Limited Company incorporated under Companies Act and business dealings with Assignor M/s.Vasudha Facility Solutions Pvt Ltd and used to avail of security services of Assignor and entered assignment deed dated 05.01.2021 in favour of Operational Creditor.

The Operational Creditor issued demand notice dated 13.01.2019 to the Corporate Debtor. But the Corporate Debtor did not issue any reply to the said demand notice. The Corporate Debtor has admitted the debt in its counter. On the basis of the above submissions, the learned counsel appearing for the Operational Creditor seeks this Tribunal to admit the Company Petition.

The Counsel appearing for the Corporate Debtor does not deny the fact that the amount claimed by the Operational Creditor is due. Counsel for the Operational Creditor submits that though the Corporate Debtor took time on earlier occasions stating that they would settle the matter, only Rs.3 Lakhs out of Rs.36 Lakhs was paid. The Counsel appearing for the Corporate Debtor submits that the Corporate Debtor is not in a position to discharge the amount due to the Operational Creditor and agreed for the CIRP to be initiated.

Hence I am of the considered view that it is a fit case to admit and order initiation of Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor. The Operational Creditor did not suggest any name as Insolvency Resolution Professional (IRP) and sought the Tribunal to appoint an IRP. Hence, Mr.Srinivas Gudla Rao, (Registration No. IBBI/IPA-001/IP-P-02093/2020-2021/13333) as Insolvency Resolution Professional (IRP).

The Company Petition is admitted. The Corporate Insolvency Resolution Process of the Corporate Debtor shall commence from this date and shall be completed within 180 days hence.