Home Case Index All Cases Insolvency and Bankruptcy Insolvency and Bankruptcy + Tri Insolvency and Bankruptcy - 2020 (10) TMI Tri This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (10) TMI 440 - Tri - Insolvency and BankruptcyMaintainability of application - Dishonor of Cheque - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - existence of debt and dispute or not - HELD THAT:- It is a settled position of law that the provisions of Code cannot be invoked for recovery of outstanding amount but it can be invoked to initiate CIRP for justified reasons as per the Code. The petitioner has initiated the instant proceedings with an intention to recover alleged outstanding amount in question. The claim relates to the period 1 April, 2017 to 16th May, 2019 covering about 18 invoices. The petitioner has not produced any Purchase order/Contract issued by the Respondent in support of supply of goods in question but produced invoices along Petition. At bottom of invoices, there is un-signed declaration by declaring that @ 18 % Per annum shall be charged if payment is delayed beyond 30 days from the date of supply or Credit terms agreed up on in writing. However, the Petitioner has not produced any evidence in support of supply of goods in question or Credit terms in question - The Petitioner has not initiated any legal action for the cause of action started from 12th February, 2018 except issuing a legal notice dated 23rd January, 2019 under the provisions of Code. The Petitioner has also not explained the delay in initiating proceedings. In view of the Respondent coming forward to settle the issue and paid Rs. Eight lakhs by way of Cheque, the Petition is to be disposed of by directing the Respondent to honour the cheque in question, when it is presented for realisation of amount, without fail - petition is disposed of by directing the Corporate Debtor to honor the cheque as mentioned above, when it is presented to the Bank by the Petitioner, without fail, failing which, the Petitioner would be at liberty to approach this Tribunal by filing fresh Petition, in accordance with law.
|