216 SEBI & Corporate Laws - Reports [Vol. 154
read with rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating
Authority) Rules, 2016 - Corporate Insolvency Resolution Process - Dispute - Cor-
porate debtor issued purchase orders to operational creditor for supply of grey
cloth - On account of non-payment of invoices, operational creditor through its
authorized representative ‘M’ filed instant application to initiate CIRP against
corporate debtor - Corporate debtor raised dispute that supply of said goods was
not in terms of order placed; claim raised in demand notice and claim in application
were not in conformity with instant application was not supported by certificate
to be issued by bank and compliance of section 9(3)(c) was incomplete - It was
noted that corporate debtor had nowhere disputed invoices or its contents prior to
section 8 notice received - Moreover, post-receiving notice, corporate debtor made
part payment without raising notice of dispute to operational creditor and thus,
dispute raised could be categorized as moonshine dispute - Whether since instant
application was complete instant application to initiate CIRP against corporate
debtor was to be admitted - Held, yes [Paras 11 and 17]
Section 60 of the Insolvency and Bankruptcy Code, 2016, read with rule 6 of the
Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016
- Corporate Persons Adjudicating Authorities - Adjudicating Authority - Whether
where registered office of corporate debtor was situated in Jaipur, Adjudicating
Authority at Jaipur had territorial jurisdiction to entertain and try application
under section 9 - Held, yes [Para 15]
Section 238A, read with section 9, of the Insolvency and Bankruptcy Code, 2016
- Limitation period - Whether where default took place on or after 22-3-2017,
instant application filed in 2019 to initiate CIRP against corporate debtor was
within limitation period of three years, and thus, same was to be admitted - Held,
yes [Para 16]
FACTS
n
The
operational
creditor
had
supplied
grey
cloth
to
corporate
debtor
as
per
purchase^
order
placed
by
corporate
debtor
during
2016
and
raised
various
invoices.^
The
operational
creditor
wrote
various
reminders
and
requested
corporate^
debtor
to
pay
the
dues
of
said
unpaid
invoices
but
no
payment
was^
coming
through.
Thus,
the
operational
creditor
issued
a
notice
under
section^
8
on
the
corporate
debtor,
which
was
duly
received
by
corporate
debtor^
through
post.
The
corporate
debtor
chose
not
to
file
reply
but
there
after -
paid
an
amount
of
Rs.
1. 46
lakh
and
Rs.
2. 11
lakh
leaving
balance
of
an^
amount
of
Rs.
20. 16
lakh.n
The
operational
creditor
therefore
filed
present
application
under
section
9
and
duly
served
the
corporate
debtor.n
The
corporate
debtor
admitted
supply
of
fabrics
by
the
operational
cred
itor -
and
also
accepted
the
receiving
of
the
invoices.
The
corporate
debtor