Bijay Pratap Singh Vs Unimax International (NCLAT Delhi)
National Company Law Appellate Tribunal (NCLAT), New Delhi, has dismissed an appeal filed by Bijay Pratap Singh, a shareholder of Unimax International (the Corporate Debtor), thereby upholding the National Company Law Tribunal (NCLT) Principal Bench’s order dated September 30, 2019, which admitted an application for Corporate Insolvency Resolution Process (CIRP) against Unimax International. The application was filed by Unimax International (the Operational Creditor) under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016.
The NCLT had initially found that Unimax International (Corporate Debtor) had procured goods, specifically aluminum/MS shuttering material, from Unimax International (Operational Creditor) and had acknowledged their receipt. The NCLT concluded that an operational debt of Rs. 61,24,637 for the financial year April 1, 2017, to August 31, 2018, remained unpaid, constituting a default under the IBC.
Appellant’s Contentions and Alleged Pre-Existing Dispute
Bijay Pratap Singh, representing the Corporate Debtor, contended that Unimax International (Operational Creditor) was engaged in supplying aluminum framework for the “Misty Heights Project.” The appellant claimed that goods were procured by a real estate firm developing the project on behalf of Maple Realcon Pvt. Ltd., and substantial payments totaling Rs. 4,51,84,594 were made.
However, the appellant asserted that certain deficiencies existed in three bills, leading to a letter dated July 2, 2016, requesting the Operational Creditor to replace defective goods. While Unimax International (Operational Creditor) responded on July 27, 2016, promising a technical team visit, subsequent reminders from the Corporate Debtor on August 25, 2016, and January 27, 2017, allegedly yielded no resolution or fresh material.
