Nimbark Fashions Limited Vs Soundararaja Mills Limited (NCLT Chennai)
NCLT Chennai held that application under section 9 of the Insolvency and Bankruptcy Code for initiation of Corporate Insolvency Resolution Process against the Corporate Debtor (Soundararaja Mills Limited) admitted as twin condition i.e. debt and default fulfilled.
Facts- This petition u/s. 9 of the Insolvency and Bankruptcy Code, 2016 r/w Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 has been filed by Nimbark Fashions Limited, represented by its Authorised Signatory Mr. Nageswaran (Operational Creditor/Petitioner) against Soundararaja Mills Limited, represented by its Managing Director Mr. Kiran Ranjit Soundarajan (Corporate Debtor/Respondent) for initiating Corporate Insolvency Resolution Process (“CIRP”) against the Corporate Debtor.
Conclusion- Held that in the present case, the Petitioner has fulfilled the twin conditions of debt and default by the Corporate Debtor. Considering the above, we agree with the contention of the Petitioner that it was not incumbent upon the Petitioner to wait until the last invoice to become due to calculate the date of default. There are e-mail communications issued by the Corporate Debtor as referred above confirming the balances payable by the Corporate Debtor (page-86 and 87 of rejoinder) which exceeds the threshold of Rs.1.0 Crore to maintain a petition under Section 9 of IBC. The reconciliation of ledger statements also demonstrate a sum of Rs.4,44,36,678/- due and pending as on 30.09.2023 which is more than Rs.1.0 Crore i.e. the threshold. The acknowledgment was through mails which was sent from the e-mail ID of the Corporate Debtor. There cannot be any question of signature or authentication on the said mails when generated from the e-mail ID of the Corporate Debtor. Thus, we admit the petition and initiate the Corporate Insolvency Resolution Process against the Corporate Debtor, Soundararaja Mills Limited.
