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Judgment
28.10.2025: This appeal has been filed against the order passed by the Adjudicating Authority dated 04.06.2025 by which the Section 9 application filed by the Respondent has been admitted. Section 9 proceedings were initiated by the Operational Creditor for a default of Rs.4,40,36,987/-. The Adjudicating Authority after hearing both the parties returned finding that the Operational Creditor has successfully proved the debt and the default and all ingredients as laid down under Section 9 are fulfilled. The finding has also been returned that application has been filed within limitation and that there being no notice of any pre-existing dispute, Section 9 application was admitted. Appeal has been filed by the Suspended Director of the Corporate Debtor challenging the order.
After having heard learned counsel for the Appellant, we are of the view that no error has been committed by the Adjudicating Authority in admitting Section 9 application debt and default having been proved. Demand notice was also issued by the Operational Creditor by Speed Post which was not replied by the Corporate Debtor. There were several acknowledgements by the Corporate Debtor which are noted in Para 12.4 of the order. Para 12.4 of the impugned order is as follows: “12.4 On perusal of the records, it transpires that the Corporate Debtor time and again acknowledges its liability to pay to the Operational Creditor. The relevant extracts of letters where the Corporate Debtor has acknowledged its liability towards the Petitioner are reproduced hereunder:-
“12.4 On perusal of the records, it transpires that the Corporate Debtor time and again acknowledges its liability to pay to the Operational Creditor. The relevant extracts of letters where the Corporate Debtor has acknowledged its liability towards the Petitioner are reproduced hereunder:-
Sr.
No.
Letter date
Relevant Extracts of the Letters
1.
15.11.2017
"We have informed the above development to you with regards to our deal for supply of Sponge Iron. Due to attachment of Bank Accounts &Provisional Attachment we are notable to refund you the advance amount paid by you to us."
2.
02.11.2019
"We have informed the above developments to you with regards to our deal for supply of Sponge Iron. Due to attachment of bank accounts, we are not able to refund you the advance paid by you to us."
3.
27.02.2021
"Due to above, our Bank Accounts are still inoperative and we are no able to refund you the advance amount paid 4.by you to us.. We assure you that the advance paid by FOU will he returned to you one our Bank Accounts become operative.”
4.
25.04.2023
We assure you that the advance you paid will be returned to you once our bank accounts are operational.
We, thus, are of the view that the Adjudicating Authority after considering all relevant facts and circumstances found that application under Section 9 fulfils all ingredients and admitted Section 9 application. We do not find any error in the order of the Adjudicating Authority admitting Section 9 application. Appeal is dismissed.