Home Case Index All Cases Companies Law Companies Law + Tri Companies Law - 2017 (10) TMI Tri This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (10) TMI 916 - Tri - Companies LawCorporate insolvency process - process triggered in case there is valid dispute - Held that:- The quality issue in respect of the huge quantity and value of the raw material has been raised though the respondent has refrained itself from filing claim for damages suffered on account of the quality of goods, as made out from the record relied upon by the respondent. The petitioner in the rejoinder has denied various documents relied upon by the respondent and mainly relies on the balance confirmation received from the respondent on 01.09.2015. It is of the view that the balance confirmation dated 01.09.2015 can at best be the settlement of the account statement in respect of the invoices for which the goods were accepted, but in the account books, there cannot possibly be entries of the damages suffered on account of return of defective material of huge value. The serious determination is required for the losses caused in respect of goods of inferior quality remained lying in the premises of the respondent for quite some time. It is averred by the respondent that due to defective raw material, it affected the business of the respondent. The insolvency resolution process cannot be triggered in case there is dispute of even part of the claim i.e. with regard to the three of the invoices of the year 2013. The present is a case where there was an existing dispute even before the issuance of the demand notice thus disentitling the petitioner to an order of admission. Neither in the petition nor in the rejoinder, the petitioner has indicated about the previous dispute whereunder the petitioner accepted return of the damaged material, though reference is made to various entries from the ledger book of the petitioner showing adjustment in respect of the goods returned. In fact the petitioner even denied the documents from Annexure R-1 to R-9 relied upon by the respondent in the written statement, which are of the year 2014. These facts indicate that the matter needs to be tried in a Civil Suit or by some other appropriate remedy. Thus the instant petition is rejected.
|