Vaibhav Metals vs Ramanand Extrusions Private Limited

Per: Suchitra Kanuparthi, Member (J)

This Company Petition is filed by Vaibhav Metals (hereinafter called "Petitioner") seeking to set in motion the Corporate Insolvency Resolution Process (CIRP) against Ramanand Extrusions Private Limited (hereinafter called "Corporate Debtor") alleging that Corporate Debtor committed default in making payment of ₹9,73,080/- as on 23.11.2017 by invoking the provisions of Section 8 and 9 of the Insolvency & Bankruptcy Code (hereinafter called "Code") read with Rule 5 and 6 of Insolvency & Bankruptcy (Application to Adjudicating Authority) Rules, 2016.

The petition reveals that the Petitioner had been supplying various types of metal scraps to the Corporate Debtor. The Petitioner supplied aluminium scraps vide invoice nos. 16 dated 09.10.2017 for ₹12,48,912/- and 22 dated 05.11.2017 for ₹9,71,730/-, thus totaling ₹20,20,642/- and received part payment to the extent of ₹12,47,562/- and a sum of ₹9,73,080/- is still payable by the Corporate Debtor. Despite several requests made by the Petitioner, the Corporate Debtor failed to clear its dues. Thus, on account of non-payment of outstanding dues, the Petitioner issued Demand Notice dated 22.02.2019 in Form 3 under Section 8 of the I&B Code, 2016 to the Corporate Debtor demanding repayment of the total amount of debt of ₹9,73,080/-.

The Counsel for the Petitioner submitted that the demand notice sent to the Corporate Debtor was returned as "insufficient address". The petition sent to the Corporate Debtor was returned with an endorsement "Addressee left". Hence, the Petitioner was directed to make newspaper publication in two newspapers, one in English language and another in Marathi language and accordingly the Petitioner effected publication and filed proof of service. However, there was no appearance from the side of the Corporate Debtor.

The Petitioner has annexed the copies of the Invoices raised pursuant to the delivery of aluminium scraps. The Petitioner has also annexed accounts from the bank maintaining accounts of the Operational Creditor confirming that there is no payment of the unpaid operational debt by the Corporate Debtor. The Petitioner has also annexed copy of the Ledger Account of the Corporate Debtor maintained in the books of the Petitioner to show the default of the Corporate Debtor.

On going through the Form-5 filed by the Petitioner and on hearing the submissions of the Petitioner, the debt and default is clear in this case.

This Adjudicating Authority having been satisfied with the petition filed by the Petitioner which is in compliance of provisions of Section 8 & 9 of the Insolvency & Bankruptcy Code, admits this application, declaring Moratorium with the directions as mentioned below: that this bench hereby prohibits the institution of suits or continuation of pending suits or proceedings against the Corporate Debtor including execution of any judgement, decree or other in any court of law; transferring, encumbering, alienating or disposing of by the Corporate Debtor any of its assets or any legal right or beneficial interest therein; any action to foreclose, recover or enforce any security interest created by the Corporate Debtor in respect of its property including any action under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002; the recovery of any property by an owner or lessor where such property is occupied by or in the possession of the Corporate Debtor.

that the supply of essential goods or services to the Corporate Debtor, if continuing, shall not be terminated or suspended or interrupted during moratorium period.

that the provisions of sub-section (1) of Section 14 shall not apply to such transactions as may be notified by the Central Government in consultation with any financial sector regulator.

that the order of moratorium shall have effect from 14.11.2019 till the completion of the CIRP or until this Bench approves the resolution plan under sub-section (1) of Section 31 or passes an order for liquidation of Corporate Debtor under section 33, as the case may be.

that the public announcement of the CIRP shall be made immediately as specified under Section 13 of the Code.

that this Bench hereby appoints Mr. Manoj Kumar Jain, having office at 11, Friends Union Premises Co-operative Society Limited, 2nd Floor, P. D. Mello Road, Mumbai- 400001, having email addressmanojj2102@gmail.com, having Registration No. IBBI/IPA-001/IP-P00535/2017-18/10960 as Interim Resolution Professional to carry the functions as mentioned under the Code.

Accordingly, this Petition is admitted.

The Registry is hereby directed to communicate this order to both the parties and to the Interim Resolution Professional immediately.