TMI Blog2020 (4) TMI 348X X X X Extracts X X X X X X X X Extracts X X X X ..... sen Reddy and Ms. M. Majusha, Advs. for the Petitioner. A. Venkatesh, Adv. for the Respondent. ORDER K. Anantha Padmanabha Swamy, Under consideration is Company Application filed by M/s.Sirius Transtech Private Limited (STPL) (in short, Petitioner/Operational Creditor ) against M/s. Akshara Enterprises Private Limited (in short, Respondent/Corporate Debtor ) under section 9 of the Insolvency Bankruptcy Code, 2016 (in short, I.B. Code, 2016) read with Rule 6 of the Insolvency Bankruptcy (Application to Adjudicating Authority) Rules, 2016 (for brevity, IB Rules, 2016). 2. Brief facts of the present Petition are as under: (a) It is stated that the Operational Creditor i.e., STPL during its course of business through Tata Consultancy Services (TCS) got the sub-contract in the project by name AP State Wide Area Network (APSWAN) Project in the year 2010, in which the TCS was the principal vendor to the said project. The said project continued from 2011 to 2015 and the STPL remained involved in it with manpower of 300 plus employees as a sub-vendor. (b) It is stated that in the year 2015 Andhra Pradesh Government has invited Limited Tender Call for Faci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ects i.e. Network Engineers of SHQ, Manpower Support at DHQ and MHQ etc. to the Corporate Debtor and required to issue PO's., to the corporate debtor. On repeated requests and demands made by the Operational creditor the corporate debtor finally issued Purchase Order No. AKS/AP/STPL/137/2015-16, dated 8-1-2016 for a sum ₹ 18,04,000/- per month for the contractual period of 12 months i.e. 1-12-2015 to 30-11-2016 with quarterly payment mode. (f) It is stated that, however, the Corporate Debtor requested the Operational debtor to continue with the services orally on other 3 quotes/contracts in the same project with different scope of work without issuing service order and hence the operational creditor in order to avoid inconvenience to the end customer, extended their services to the end customer i.e. Government Authorities upto May, 2017. The Corporate debtor besides utilising the services of Operational creditor has also started approaching the employees of Operational creditor and offered jobs in their company, which is absolutely violative of their agreement terms and e-mails dated 8-2-2016 were issued to corporate debtor bringing to their notice about the breaching ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oner. b. It is stated that the Petitioner raised four quotations and the Respondent has agreed for only one quotation and accordingly, one service order dated 8-1-2016 was issued by the Respondent. According to the service order, the Petitioner herein is obligated to provide the necessary manpower in the Mandal Headquarters level. Further the Petitioner as per the terms of the service was obligated to raise invoice quarterly as per the payment terms mentioned in the service order. However, the Petitioner miserably failed to provide any services and therefore no invoices were raised by the Petitioner as per the service order. As the Petitioner failed to provide any services in accordance with the consortium agreement read along with the Service order, the Respondent being the prudent and responsible entity has conducted the business on its own. It is stated that the Respondent also performed the works which were ought to be performed by the Petitioner. It is further stated that due to Petitioner's non-performance of its duties in accordance with the service order and consortium agreement, the Petitioner is not only in the breach of the contract but also caused severe losses t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to Consortium Agreement between the Operational creditor and the Corporate Debtor the Operational creditor was responsible for equipment service and maintenance service and manpower service as required during warranty and the Corporate Debtor was responsible for the project including bid management. That the Corporate Debtor orally requested the Operational Creditor to supply manpower also at SHQ DHQ levels as it was having similar work experienced and the Corporate Debtor was a new entrant to this area. It is claimed by the Operational Creditor that the Corporate Debtor issued only one Purchase Order dated 18-1-2016 against the four quotations submitted by the Operational Creditor for various services but requested the Operational Creditor to continue the services, across all levels. The Corporate Debtor on the other hand has contended that the Petitioner miserably failed to provide any services and therefore no invoices were raised by the Petitioners as per the terms of the Purchase Order. Therefore, the Corporate Debtor has denied the claim of the Petitioner. 7. Upon perusal of record, this Adjudicating Authority observes that out of four quotations, only one Purchase Orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onal debt in relation to such dispute? If any one of the aforesaid conditions is lacking, the application would have to be rejected. Apart from the above, the adjudicating authority must follow the mandate of section 9, as outlined above, and in particular the mandate of section 9(5) of the Act, and admit or reject the application, as the case maybe, depending upon the factors mentioned in section 9(5) of the Act. 10. When the Petitioner's case is seen in the light of the above ground rules, it is apparent that the Petitioner has failed to submit any documentary evidence with the application to show that the claimed amount is due and payable by the Corporate Debtor. No invoice whatsoever has been submitted before us either. 11. Further, as admittedly stated in the Written Submission filed by the Petitioners, there have been several e-mail correspondence, which indicate that pre-existing disputes have been there between parties. One such e-mail is especially referred to by the Petitioner: 4. Meanwhile the Operational Creditor sent an e-mail dated 8-2-2016, to the Corporate Debtor (pg. nos. 107 to 108) communicating the issues to be resolved, includes poaching of em ..... X X X X Extracts X X X X X X X X Extracts X X X X
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