Writers and Publishers Pvt. Ltd. Vs Oriental Coal Corporation (NCLAT Delhi)
National Company Law Appellate Tribunal (NCLAT), Delhi, recently delivered a judgment in the appeal filed by Writers and Publishers Pvt. Ltd. (the Appellant), challenging an order from the National Company Law Tribunal (NCLT), Indore Special Single Bench at Ahmedabad. The NCLT’s order, dated August 25, 2022, had admitted an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC), initiated by Oriental Coal Corporation (the Operational Creditor/Respondent No. 1) against Bhaskar Foods Private Limited (the Corporate Debtor/Respondent No. 2), the Appellant’s parent entity. The Adjudicating Authority had concluded that a debt was established, acknowledged, and defaulted upon, dismissing the Corporate Debtor’s defence of a pre-existing dispute as “moonshine.”
Case Background: The case stems from commercial transactions where Bhaskar Foods Private Limited, a manufacturer requiring steam coal, issued purchase orders to Oriental Coal Corporation for the supply of 500 metric tons of steam coal. Deliveries were made with corresponding invoices, which stipulated quality parameters and payment terms, including a 2% monthly interest for delayed payments.
Oriental Coal Corporation, claiming non-payment for materials supplied, issued a demand notice on March 12, 2018, seeking Rs. 46,95,033, which included Rs. 28,63,389 in interest. Subsequently, a Section 9 application was filed in May 2018. The matter initially faced a split decision from a two-member NCLT bench in Ahmedabad, necessitating referral to a third member for resolution. The Adjudicating Authority’s final decision on August 25, 2022, found in favour of the Operational Creditor, admitting the insolvency application.
