TMI Blog2019 (10) TMI 966X X X X Extracts X X X X X X X X Extracts X X X X ..... Limited, the Corporate Debtor had defaulted in repaying a sum of ₹ 7,17,65,096/-. Hence this petition is filed under Section 9 of Insolvency and Bankruptcy Code, 2016, R/w Rule 6 of Insolvency Bankruptcy (Application to the Adjudicating Authority) Rules, 2016, seeking admission of the Petition, initiation of Corporate Insolvency Resolution Process, granting moratorium and appointment of Interim Resolution Professional as prescribed under the Code and Rules thereon. 2. The brief averments made in the petition are as follows: a) It is averred that the Corporate Debtor is in to the business of manufacturing rubber products. The Operational creditor supplied raw material Butyl Reclaimed Rubber to the Corporate Debtor. b) It is averred that the Operational Creditor has raised invoices on continuous basis and been receiving the payments against the Running Account bills. From 06.09.2014 to 25.09.2015 the Operational Creditor has raised various invoices to the tune of ₹ 5,73,15,250/- against the material supplied to the Corporate Debtor. The Corporate Debtor failed to pay the invoices amount and committed default. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al Creditor and Corporate Debtor. 5. We heard both sides. The Petitioner filed this petition under Section 9 of Insolvency and Bankruptcy Code, 2016 on the ground the Corporate Debtor committed default of Operational debt of ₹ 7,17,65,096/- which includes interest of ₹ 1,44,49,846/-. 6. The Corporate Debtor is doing business of manufacturing the rubber product and having business relationship with Operational Creditor since two decades who supplie Butyl Reclaimed Rubber to the Corporate Debtor. Butyl Reclaimed Rubber is used as raw material for manufacturing rubber products. The Operational Creditor has been continuously supplying the material to Corporate Debtor, raising invoices on continuous basis and has been receiving the payment against Running Account Bills. 7. The case of Operational Creditor is that it supplied rubber between 06.09.2014 to 25.09.2015 and raised invoices of ₹ 5,73,15,250/- and interest accrued thereon is ₹ 1,44,49,846/-. The working sheet is attached as Annexure-2 to the petition. Invoices raised are shown as Annexure-3 to the petition. 8. It is the case of Corporate De ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce for dishonour cheques under Section 138 of NI Act, the Corporate Debtor came forward with alleged dispute. Secondly, there is no material filed by the Corporate Debtor to substantiate that the goods were of inferior quality. It is a mere allegation levelled against the Operational Creditor. The very fact the Corporate Debtor issued cheques towards part payment of the amount due, itself goes to show that there is no truth in its allegations that the goods were of inferior quality. If goods are actually of inferior quality, then why Corporate Debtor issued cheques towards part payment. So, the alleged dispute falls to ground. It cannot be looked into. The Operational Creditor issued Demand Notice dated 03.06.2017 for which the Corporate Debtor issued reply raising the same dispute. Hon ble Apex Court has clearly held in the decision of Mobilox Innovations (P.) Ltd. v. Kirusa Software (P.) Ltd. at Paragraph No. 40 of the judgment held as follows: It is clear, therefore, that once the operational creditor has filed an application, which is otherwise complete, the adjudicating authority must reject the application under Section 9(5)(2)(d) if notice of dispute has be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s a dispute. There is absolutely no dispute about supply of rubber for which invoices were raised. There is also no dispute with regard to the amounts covered by invoices which were not paid and Corporate Debtor had committed default. The alleged dispute is not substantiated and it is only imaginary, illusory and not supported by any evidence. 14. Therefore, Petition is liable to be admitted. 15. The Operational Creditor has failed to name anyone as interim resolution professional and has requested the tribunal to appoint one for the Corporate Insolvency Resolution Process. The Insolvency and Bankruptcy Board of India (IBBI) has recommended a panel of Insolvency Professionals for appointment as Insolvency Resolution Professional for the period 1st July, 2019 to 31st December, 2019 in compliance with Section 16(3)(a) of the Code in order to avoid delay. Accordingly, this tribunal appoint Mr. Nukala Sreedhar, IP Registration No. IBBI/IPA-001/IP-P00432/2017-2018/10755, E-mail Id: sreenuka l@yahoo.com, Mobile No:9848146369 as an Interim Resolution Professional. The aforesaid interim resolution professional has no disciplinary proceedings pending against hi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... professional is under duty to protect and preserve the value of the property of the Corporate Debtor and shall perform all his functions strictly in accordance with the provisions of the Code. e) The Petitioner is directed to pay a sum of ₹ 1,00,000/-(One Lakh Only) to the interim resolution professional to meet out the expenses to perform the functions assigned to him in accordance with regulation 6 of IBBI (Insolvency Resolution Process for Corporate Person) Regulations, 2016. This shall, however, be subject to adjustment by the committee of creditors as accounted for by interim resolution professional and shall be paid back to the petitioner. f) That the order of moratorium shall have effect from 13.08.2019 till the completion of the Corporate Insolvency Resolution Process 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, whichever is earlier. g) That the Public announcement of Corporate Insolvency Resolution Process shall be made immediately as specified under section 13 of the code. Accordingly, th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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