Mamtha Steels Corporation Vs Yosmite Engineering Pvt. Ltd. (NCLAT Chennai)
NCLAT Chennai held that rejection of application preferred u/s. 9 of the Insolvency and Bankruptcy Code [I&B Code] not justified since existence of financial debt arising out of business transaction established.
Facts- The issue, in the instant company appeal, preferred under Section 61 of I & B Code, has its birth from the Order dated 27.07.2023, as it was rendered by the Ld. NCLT Special Bench-I Chennai, in Company Petition, whereby an application filed by the Appellant company M/s. Mamtha Steels Corporation, which is represented by its proprietor, Mr. Vasanram, in the capacity of being an Operational Creditor, for drawing the CIRP proceedings as against M/s. Yosmite Engineering Private Limited, the Corporate Debtor under Section 9 of I & B Code has been rejected.
Conclusion- It is clear that there existed a financial debt arising out of a business transaction, which in spite of raising of the demand, admittedly was not remitted, even after a proper issuance of notice under Section 8 of I & B Code, the factum of which stood admitted by the Respondent in the subsequent communication made on the WhatsApp message. It is a fact which stood established by evidence, and thus the contention raised by the Respondent to the contrary with regards to the reply to the legal notice of 05.12.2018, will not carry much weight.
