Daga Power Systems & Engineers Private Limitedvs ASB Energy Systems And Construction Private Limited (NCLT Cuttack)
NCLT Cuttack held that application under section 9 of the Insolvency and Bankruptcy Code for initiation of Corporate Insolvency Resolution Process [CIRP] against Corporate Debtor [ASB Energy Systems and Construction Pvt. Ltd.] is admitted as operational debt and default thereon is admitted.
Facts- This present Application has been filed by Daga Power Systems & Engineers Private Limited (Operational Creditor/Applicant) under Section 9 of Insolvency and Bankruptcy Code, 2016 read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 to initiate Corporate Insolvency Resolution Process against ASB Energy Systems and Construction Private Limited (Corporate Debtor/Respondent) for a default of Rs. 3,19,92,738/- along with interest of Rs. 1,08,77,531/- as on 30.10.2021.
Conclusion- Held that there existed no pre-existing dispute between the Operational Creditor and the Corporate Debtor prior to the issuance of the Demand Notice under Section 8 of the Insolvency and Bankruptcy Code, 2016. Upon examination of the invoices raised by the Operational Creditor, it is evident that the Corporate Debtor has defaulted in making payment of an operational debt exceeding Rs. 1 Crore. The said default is also corroborated by the Corporate Debtor’s acknowledgement of liability, as per its letter dated 21.10.2022 and in the ledger account of the Operational creditor maintained by the Corporate Debtor.
