Modi Oil and General Mills Through its Partner Ashok Kumar Modi vs Tirupati Coatings Pvt. Ltd

Heard learned counsel for the Appellant. This Appeal has been filed against the order dated 12.07.2022 by which order the Adjudicating Authority (National Company Law Tribunal), New Delhi, Bench-IV has rejected the Section 9 application of the Appellant holding it to be barred by Section 10A.

Learned counsel for the Appellant submits that there was running account between the parties and the date of default as claimed in the application was 28.03.2021. Learned counsel for the Appellant further submits that Respondent-Corporate Debtor had not even disputed the date of default.

We have considered the submissions of learned counsel for the Appellant and perused the record.

The Section 9 application was filed on the basis of 16 invoices for an outstanding amount of Rs.1,15,32,156/-. In Para 9 of the judgment of the Adjudicating Authority, the Adjudicating Authority has noticed the date of each invoice and the date of default which was calculated as per case of the Appellant that modality of clearance was agreed as 70 days, as claimed in the application. When we look into the date of invoice and date of default after 70 days, for 15 invoices default fall between 21.01.2021 to 11.03.2021 i.e. period when Section 10A bared initiation of any proceeding under Section 9 for the default during the said period.

Learned  counsel  for  the  Appellant  sought  to  contend  that  the Adjudicating Authority suo-motu could not have gone into and find out as to what the date of default is. We do not find any substance in this submission. When Section 10A bars the application, Adjudicating Authority was well within its rights to examine and give findings as per the application and records brought in by the Appellant. We, thus, do not find any error in the order of the Adjudicating Authority rejecting Section 9 application filed by the Appellant as barred by Section 10A of the I&B Code. The Appeal is dismissed.