Tribunals and CommissionsDivision Bench(2023) 01 NCLAT CK 0656

S N Engineers vs Vedant Dyestuffs Intermediates Pvt. Ltd. & Ors.

National Company Law Appellate Tribunal, New Delhi · Decided on 5 January 2023

HON’BLE JUDGES
Ashok Bhushan, Chairperson · Barun Mitra, Member (Technical)
CASE NUMBER
Company Appeal (AT) (Insolvency) No. 1456 of 2022

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Judgment

10 paragraphs · 564 words

O R D E R

Heard learned counsel for the Appellant as well as learned counsel appearing for the Respondent.

2.

This Appeal has been filed against order dated 14.10.2022 by which order the Adjudicating Authority has rejected Section 9 application filed by the Appellant. The Adjudicating Authority heard the parties and returned its findings in Para 8 of the order, which are to the following effect:

“8.

To examine this issue, the following facts are relevant. There were two types of invoices issued by the Operational Creditor in the course of their business, Tax Invoices and Proforma Invoices. The general practice between the parties was that such Proforma invoice/Quotations/Estimates for certain work were issued by the Operational Creditor post which the scope of work was examined and Purchase Orders for specific work were issued by the Corporate Debtor. The work was then performed based on these Purchase Orders and Tax Invoices were raised by the Operational Creditor only for the work so done. It is noted that the Corporate Debtor has regularly made payments on the Tax Invoices so raised and even admits that a balance payment of Rs.5,10,482/-remains due on the Tax Invoices duly raised by the Operational Creditor and undertakes to clear the same immediately.”

3.

Aggrieved by the order of the Adjudicating Authority, the Operational Creditor has come up in this Appeal.

4.

Learned counsel for the Appellant submits that in fact the Appellant had performed more work and certain other work measurement was submitted but no purchase order was issued by the Corporate Debtor. It is further submitted that Appellant is entitled for more amount to be paid by the Corporate Debtor except the amount of Rs.5,10,482/- as noticed in the order of the Adjudicating Authority in Para 8. It is submitted that present is a case where there is no pre-existing dispute between the parties, hence, the application was not to be rejected.

5.

Learned counsel for the Respondent submits that insofar as Tax Invoices are concerned which were placed before the Adjudicating Authority, the entire amount was paid except the amount of Rs.5,10,482/-, which is also the finding recorded by the Adjudicating Authority.

6.

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

7.

The grievance raised in the Appeal is that the Appellant is entitled for some more amount than the one which was paid by the Corporate Debtor. It is submitted that certain other work was also done for which measurement was submitted but no purchase orders were issued or payments were made. We are of the view that the issues which are sought to be raise in this Appeal are the issues which cannot be decided in a Section 9 proceeding. The Adjudicating Authority having found that the entire payment was made except the amount of Rs.5,10,482/-, which was undertaken to be paid immediately by the Corporate Debtor, we see no reason for admitting the Section 9 application.

8.

In view of what has been noticed in para 8 of the impugned order, we direct the Corporate Debtor to make payment of Rs.5,10,482/- by way of a bank draft within one week to the Operational Creditor. Insofar as other claims of the Appellant, as raised before us, it is always open for the Appellant to seek remedy in accordance with law. With these observations, Appeal is disposed of.