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2018 (3) TMI 320 - Tri - Insolvency and BankruptcyCorporate insolvency process - existence of operational debt - failure to make payment against procurement of paddy - Held that:- As per the invoices issued by the Operational Creditor with regard to supply of paddy to the Operational Debtor it is proved beyond doubt that ‘goods’ in terms of Section 5(21) of the Code were procured by the Operational Debtor from the Operational Creditor on various occasions. It is patent from a perusal of the VAT D-2 form (from pg. 216-220) issued by the Respondent Company that it acknowledges the receipts of 1203 quintals of paddy from the petitioner firm. For determination of the aforesaid issue it would be necessary to read the definition of the expression ‘Operational Debt’ given in Section 5(21) of the Code The definition of operational debt postulates that it is a claim, inter alia, in respect of the provision of ‘goods’ or ‘services’ including employment etc. A perusal of the invoices issued by the ‘Operational Creditor’ in the name of Operational Debtor clearly shows that ‘Operational Creditor’ has supplied paddy to the Operational Debtor on various occasions. Therefore, the debt which is due and payable by the Operational Debtor to the Operational Creditor is prima facie covered by Section 5(21). It is also evident that Operational Debtor has committed default and the amount of ₹ 32,55,653/- has remained unpaid. Thus, there is default committed on the part of the Operational Debtor within the meaning of Section 3(12) read with Section 4 and Section 9(1) of the Code, 2016. As a sequel to the above discussion, this petition is admitted. In pursuance of Section 13(2) of Code, we direct that Interim Insolvency Resolution Professional shall immediately make public announcement with regard to admission of this application under Section 7 of the Code.
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