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2019 (5) TMI 1736 - Tri - Insolvency and BankruptcyCIRP Process - withholding of supply of goods - recovery of arrears - whether during the period of corporate insolvency resolution process supply of goods paid for could be with held on the ground that the supplier has to recover arrears of a debt in respect of the pre-corporate insolvency period? - HELD THAT:- There is a basic distinction between the transaction & payments pertaining to period prior to CIR period & the transactions /payments which are required to be made during CIR period. The pre-CIR period payments are to be part of the claims made before the Resolution Professional whereas the post CIR period transactions are not treated on the same footing. The goods & services supplied during CIR period has to be fully paid in order to carry on the business of the Corporate Debtor as a going concern. In that connection the Resolution Professional and Committee of Creditors are fully empowered to place an order for supply of goods against the consideration for those goods. In the present case it has not been disputed that the petition was admitted on 05.09.2017 and the Purchase Order was placed thereafter on 16.07.2018. Obviously, this was a transaction post admission of the petition and a payment for a sum of ₹ 34,47,075/- was made which was inclusive of packing charges, IGST, etc. - Clearly after accepting the amount it got the goods unloaded and defence now put forward is that in respect of pre-CIR period Corporate Debtor owed Non-Applicant-Respondent huge amount which must be paid and supply of goods in that garb had been withheld. Such a conduct emerges from the intention to violate law which is well settled that pre CIR period claims are on a different pedestal than the one made post CIR period. Therefore it is not possible to accept the defence that on account of debt in respect of pre-CIR period the goods could be detained. The Respondent are directed to supply the goods and dispatch the same to the end user namely Sanjay Gandhi Thermal Power Project, Madhya Pradesh Power Generating Company Ltd. - application disposed off.
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