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TMI Blog2021 (5) TMI 616X X X X Extracts X X X X X X X X Extracts X X X X ..... iate Corporate Insolvency Resolution Process (CIRP) in respect of M/s. Velankani Electronics Pvt. Ltd., on the ground that it has committed default for amount of INR. 5,07,27,295.76/- (Rupees Five Crores Seven Lakhs Twenty Seven Thousand Two Hundred and Ninety Five and Seventy six paisa only) (USD 781,020.72) converted at the rate as on the date of first tax invoice 06.03.2018 (IUSD = Rs. 64.95). 2. Brief facts of the case, as mentioned in the Company Petition, which are relevant to the issue in question, are as follows: (1) M/s. Arrow Electronics Asia (S) Pte Ltd. ('Operational Creditor') was incorporated in the year 2002 having Identification No. 199505934R and the registered officer situated at 750E, Chai Chee Road, #07-01/02, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erein, the Corporate Debtor has admitted to the debt and has raised untenable reasons for the delay in payment. As a matter of fact, the Operational Creditor has made several attempts to accommodate the Corporate Debtor, however, the Corporate Debtor has failed to satisfy the above admitted debt in any manner whatsoever. The Corporate Debtor has admitted to the aforementioned debt by way of Emails dated: 17/07/2018, 24/09/2018, 18/10/2018, 01/12/2018, and 20/02/2019. (5) Followed by several email communications, a Notice dated 10/01/2019 was issued by their counsel at Singapore De Souza Lim & Goh, Advocates & Solicitors. However, it failed to respond to the intimations pertaining to its liability towards payment of the pending dues for th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al dues claimed by the Petitioner is in respect of certain electronic components supplied by the Petitioner. And it had issued demand notice dated 07.06.2019. Subsequently, the Parties negotiated and agreed to schedule of payment proposed by Respondent. At the relevant point of time, the Respondent was facing temporary cash flow issues, and in normal course had anticipated to generate funds and discharge the dues of the Petitioner in reasonable time. The Respondent on 08.07.2019 had proposed payment plan/schedule to the Petitioner. After some negotiations, the same was accepted by the Petitioner, as evidenced from the Petitioner's communication dated 26.08.2019. In view of the fresh agreement between the Parties, in supersession of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ended to discharge the Petitioner's dues. (6) With the unfortunate spread of Covid-19 pandemic and the nation-wide lockdown imposed by the Union of India with effect from 24.03.2020 and other restrictive measures taken by the State agencies and adverse impact of the Pandemic on the economy worldwide, the expected funding of Respondent has been further delayed. With regard to this, the Petitioner agreed for a fresh payment plan. Pertinently, the Respondent had informed and requested the Petitioner on 10.07.2020, whereas the Petitioner further agreed to payment before mid October 2020, as communicated by Petitioner in its mail dated 23.09.2020. Unfortunately, on account of continued global economic distress, the Respondent's funding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... agreement was executed between the parties, prior to supply of goods in question. The Respondent has also denied receipt of any statutory demand notice as required under the provisions of Code. Moreover, the instant Petition is alleged to have filed to recover interest part, that too against solvent Company. And mere agreeing to pay outstanding cannot automatically entitled a party to invoke provisions of Code. It is also to be noted that provisions of Code are being suspended periodically by the Govt. of India to give relief to affected industry. Therefore, invocation of provisions code in the present circumstances is too premature and not justified basing on facts and circumstances. Therefore, it would just and proper for the parties to e ..... X X X X Extracts X X X X X X X X Extracts X X X X
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