9911796707
TMI Blog2021 (1) TMI 1227X X X X Extracts X X X X X X X X Extracts X X X X ..... i. That the Operational Creditor is one of the leading Company in the business of import and trading of various types of Edible Oils and has created a niche for itself in the market since more than past two decades. The operational creditor stated that High Seas Sale Agreement dated 26.10.2017 was executed between the Operational Creditor and the Corporate Debtor for import of Crude Palm Oil (Edible Grade) in Bulk for quantity of 999.903 Metric Tons. ii. The operational creditor further stated that pursuant to the aforesaid High Seas Sale Agreement dated 26.10.2017; the Corporate Debtor purchased Crude Palm Oil (Edible Grade) in Bulk from the Applicant herein for which an Invoice has been raised being Inv. SI. No. JOFL/15/2017-18 dated 26.10.2017 for amount of Rs. 4,73,25,409.00/- pertaining to 999.903 metric tons Crude Palm Oil of (Edible Grade) in Bulk @ Rs. 47,330/- PMT. iii. It is further stated that another High Seas Sale Agreement dated 09.12.2017 was executed between the Operational Creditor and the Corporate Debtor for import of Crude Palm Oil (Edible Grade) in Bulk for quantity of 1250.00 Metric Tons. Pursuant to the aforesaid execution of the High Seas Sale Agreeme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2% per annum which is due and payable by the Corporate Debtor to the Operational Creditor as on date. In such circumstances, the Operational Creditor was constrained to issue a Demand Notice dated 28.01.2021 as prescribed under Section 8 of the Insolvency and Bankruptcy Code, 2016 to the Corporate Debtor through speed post. viii. It is also submitted that the Corporate Debtor through its Counsel sent its Reply dated 04.02.2021 to Demand Notice whereby the Corporate Debtor denied the payments towards the debt due and further disputed the Claimed amount by stating that the goods supplied were in deteriorated quality. ix. That the payments have not been made by the Corporate Debtor but instead the Corporate Debtor has raised frivolous quality issues in order to evade from making due payments vide its reply dated 04.02.2021. It is reiterated that an amount of Rs. 6,49,94,661/- is due and payable by the Corporate Debtor to the Operational Creditor as on date along with interest @ 12% p.a. It is evident from the aforesaid facts that the Corporate Debtor is unable to discharge its liability and hence, it is a fit case to initiate corporate insolvency resolution process in the captione ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Mr. Sanjiv Kumar, Additional District and Session Judge (Retd.) as Arbitrator in accordance with the provisions of Arbitration & Conciliation Act. Pursuant to letter dated 29.03.2019 issued by the Operational Creditor, the Corporate Debtor by its letter dated 04.04.2019 had again informed about deteriorated quality of Crude Palm Oil of Edible Grade and asked the Operational Creditor to pay an amount of Rs. 50 crores towards losses incurred by the Corporate Debtor. v. That the Corporate Debtor had raised a dispute with regard to the alleged claimed amount by its letter dated 04.04.2019 and had given no objection for appointment of Mr. Sanjiv Kumar, Additional District and Session Judge (Retd.) as an Arbitrator to resolve the dispute. In the Arbitration proceedings, the Operational Creditor filed its Statement of Claim for recovery of amount of Rs. 6,49,94,661/- against which the Corporate Debtor also filed its Counter Claim towards losses suffered by it due to deteriorated quality of Crude Palm Oil of edible grade. The Sole Arbitrator, Mr. Sanjiv Kumar, Additional District and Session Judge (Retd.) after consideration of the disputes raised by both the parties, had passed an Ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Corporate Debtor has raised frivolous quality issues in order to evade from making due payments vide its reply dated 04.02.2021. * That it is evident from the aforesaid facts that the Corporate Debtor is unable to discharge its liability and hence, it is a fit case to initiate corporate insolvency resolution process in the captioned matter. 5. The Counsel for the Corporate Debtor has filed its written submissions in respect to the submissions made in the application: * It was submitted that the present Insolvency Petition filed by the Operational Creditor is not maintainable in law and is liable to be rejected out rightly, as there is a pre-existing dispute between the parties. * It was further submitted that the Corporate Debtor had intimated Operational Creditor on several occasions with regard to the deteriorated quality of goods supplied to it and further reserved its right to claim losses suffered by it. * That the Operational Creditor had invoked Arbitration before it approached this Hon'ble Adjudicating Authority under Section 9 of the IBC. * That the Operational Creditor in its letter dated 31.01.2019 stated that "if it gets any refund from the suppliers a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... we will refund the same to you." 9. It is further pertinent to mention that the existence of dispute is evident from the letter dated 29.03.2019 issued by Operational Creditor whereby, the Operational Creditor had referred the dispute to the Ld. Arbitrator for outstanding payment of Rs. 6,49,94,661/- and proposed the name of Mr. Sanjiv Kumar, Additional District and Session Judge (Retd.) in pursuant to Arbitration & Conciliation Act. In pursuance of letter dated 29.03.2019 issued by the Operational Creditor, the Corporate Debtor by its letter dated 04.04.2019 had again informed about deteriorated quality of Crude Palm Oil of Edible Grade and asked the Operational Creditor to pay an amount of Rs. 50 crores towards losses incurred by the Corporate Debtor. In the Arbitration proceedings, the Operational Creditor filed its Statement of Claim for recovery of amount of Rs. 6,49,94,661/- against which the Corporate Debtor also filed its Counter Claim towards losses suffered by it due to deteriorated quality of Crude Palm Oil of edible grade. The Sole Arbitrator, Mr. Sanjiv Kumar, Additional District and Session Judge (Retd.) after consideration of the disputes raised by both the parties ..... X X X X Extracts X X X X X X X X Extracts X X X X
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