Drip Capital Inc Vs Sumarrow Impex LLP (NCLT Ahmedabad)
NCLT Ahmedabad held that application under section 7 of the Insolvency and Bankruptcy Code for initiation of Corporate Insolvency Resolution Process [CIRP] against Sumarrow Impex LLP (Corporate Debtor) admitted as financial debt and default stands proved.
Facts- This Application has been filed under Section 7 of Insolvency and Bankruptcy Code, 2016 by Drip Capital Inc. (Financial Creditor) seeking initiation of Corporate Insolvency Resolution Process against Sumarrow Impex LLP (Corporate Debtor) for having committed a default of an amount of Rs.1,76,62,185/- (USD 211,346). The date of default is 10.01.2024.
Conclusion- The existence of an arbitration clause or pendency of proceedings under the Negotiable Instruments Act, 1881 does not bar initiation of proceedings under IBC as Section 238 of IBC has an overriding effect over other laws, even if there is a private contract’s in built arbitration clause. The objections regarding pre-dated invoices, alleged suppression of facts, and improper stamping are also without merit. The payments received from the buyer have been adjusted by the financial creditor. The Applicant has satisfied this Tribunal as to the existence of debt with proper documents. The objection regarding apostille carries no strength, as the debt is otherwise proved through other evidences in terms of Section 7(3) of the Code.
