Mr. Ranjith Babu vs VRMX Concrete India Pvt. Ltd.

Per: SAMEER KAKAR, MEMBER (TECHNICAL)

This Application has been filed by the Operational Creditor Mr. Ranjith Babu, Proprietor of NXT GEN RMC having its registered office at Block No.6, 2nd Floor, Door No.6, 2nd Floor, Door No.A, Bashyam Navarathana Apartments, Thiruneermalai Road, Chromepet, Chennai – 600 044 for initiating Corporate Insolvency Resolution Process on VRMX Concrete India Pvt. Ltd under Rule 6, 8 r/w Section 9 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016.

Part - II of the application reveals that the Corporate Debtor was incorporated on 19.07.2018 with CIN No.U45500TN2018PTC123789. The registered office of the corporate debtor is at 17/22, Nehru High Road, B.V. Nagar, Palavanthangal, District : Kancheepuram, Chennai - 600 114.

In Part III of the application, the Operational Creditor has not named any Interim Resolution Professional.

In Part IV of the application the Operational Creditor has claimed unpaid debt of Rs.1,03,36,069/- (Rupees One Crore Three Lakh Thirty-Six Thousand and Sixty-Nine Only) including interest as on 31.05.2021 stating the debt first fell due on 27.04.2019 and thereafter on various dates till 19.04.2020. Copies of various invoices are attached as Annexure A. The Applicant has also attached copies of the ledger accounts for the period from 01.04.2018 to 21.05.2021 of the corporate debtor maintained by the operational creditor demonstrating the computation of default in tabular form attached as Annexure B. The statement of interest calculation is attached as Annexure C. Page No.151 the Principal amount and interest claimed are stated as Rs.80,88,255.36 and Rs.22,47,813.45. The Operational Creditor has attached the confirmation of accounts / common acknowledgment of the debt as given by the corporate debtor for the period from 01.04.2019 to 31.05.2020 as Annexure – D.

The copy of the demand notice dated 08.06.2021 was sent by the operational creditor through speed post and was delivered to the corporate debtor on 09.06.2021 & 10.06.2021 as per the track report placed on page nos.23 & 24 of the application. It is stated that there is no reply to the notice of the operational creditor regarding any dispute. The operational creditor has filed affidavit of not dispute which is placed at Annexure – IV.

Counter has been filed by the Respondent under S.R.No.4600 dated 12.10.2021. It is stated that the applicant is trader of cement and concrete. The Respondent is the manufacturer of Ready-Mix Concrete. The Applicant used to supply the same to the Respondent based on the purchase order issued by the respondent. Similarly, respondent used to supply ready mix concrete to the applicant based on the purchase order issued by the applicant.

It is stated that Respondent’s business activities used to be carried out by four directors namely Ramasamy Sundarraj Rajkumar, Ganabathi Subramani Ramakrishnan, Kalaivanan Ayyappan and Kolappan Alvin. The business with the applicant used to be looked after by one of the Directors namely Mr.Ganabathi Subramani Ramakrishnan.

It is stated that on 05.06.2020 during the pandemic period all the four directors resigned and communicated the same through Registered Post. Before resigning the directorship, all the four directors had directed the Accounts Manager of the Respondent to issue balance confirmation letter to the Applicant as on 01-06-2020 without the consent of the Board of Directors. It is stated that the resignation of the four directors created vacuum due to which the business of the Corporate Debtor suffered.

It is stated that the demand notice dated 08.06.2021 was replied on 11.07.2021 through the lawyer of the respondent. In the reply the respondent had admitted to pay a sum of Rs.80,63,232/- as on 06.08.2020. The same is attached at page nos.155 & 156 of the typeset of the document filed under S.R.No.6380. It is stated that respondent had issued demand notice dated 02.01.2021 to one M/s. AR Constructions where Mr. Ranjith Babu of M/s. Nxt Gen RMC is also a Director / Partner.

It is stated that M/s. Nxt Gen RMC and M/s. AR Constructions are liable to pay a sum of Rs.1,25,71,549/- to the Respondent. However it is admitted by the Respondent that a sum of Rs.80,63,232/- is due to to the applicant herein. It is stated that a sum of Rs.10,43,913/- was remitted by the respondent to the applicant on 06.08.2020 which was prior to the issue of the demand notice dated 08.06.2021.

It is stated that as per their records, a sum of Rs.12,79,059/- is the only sum payable to the Applicant for which he is ready and willing to pay in instalments.

Heard the Counsels and perused the documents. This application has been filed on 13.07.2021. The list of various invoices are attached at page nos.26 to 145 of the Application. The statement of interest calculation attached at page no.151 as Annexure – II (C) is as below:

The principal amount claimed is in the present case is Rs.80,88,255/-. Whereas, threshold to file application under Sections 7, 9 and 10 of IBC, 2016 is Rs.1,00,00,000/- (Rupees One Crore) vide notification dated No. S.O. 1205(E), dated 24.3.2020. The relevant provision is extracted hereunder.

There is no specific agreement so as to the interest, no specific incidence has been shown where the Respondent agreed / paid the interest on the invoice.

It is also noted that there were mutual dealings between the parties through various companies under the same management.

For the aforesaid reasons, we are of the view that this application does not meet the pecuniary threshold prescribed under Section 4 of IBC, 2016. The same is not maintainable. Accordingly, CP(IB)/138(CHE)/2021 stands dismissed.