Case Law Details
NSL Krishnaveni Sugars Ltd Vs Trident Sugars Limited (NCLT Hyderabad)
Conclusion: Corporate Insolvency Resolution Process (“CIRP”) was initiated against Trident Sugars Ltd. and had appointed Mr. Medi Yadaiah as the Interim Resolution Professional (IRP) as the Corporate Debtor had neither paid the balance amount nor raised any dispute in respect of the quantity or the amount at any point of time.
Held: In the instant case, the Operational Creditor had entered into an agreement dated 14.11.2019 with Trident Sugars Ltd. (“Corporate Debtor”) for Molasses Purchase, whereby the latter was to supply Molasses to the tune of 10,000 MT by the end of March 2020 . The Operational Creditor was obligated to pay entire sale consideration price in advance by virtue of the terms of Agreement. Operational Creditor had performed its part of obligation in paying the entire amount where as Corporate Debtor had short supplied Molasses of 5051.715 MT against 10,000 MT. Operational Creditor issued a demand notice under Section 8 of the Insolvency and Bankruptcy Code, 2016 (“IBC”) to the Corporate Debtor for a default of Rs.3,22,17,993/-, to which neither any response was received nor any dispute was raised. Subsequently, the Operational Creditor filed a petition under Section 9 of the IBC, seeking initiation of CIRP against the Corporate Debtor. The petition had been filed with intent to drag the Corporate Debtor into insolvency, which would be detrimental to the company and its employees. Maintainability of the petition was challenged over being hit by Section 10A of IBC which prohibited initiation of CIRP over a default that occurred between 25.03.2020 to 24.03.2021.The Petition was filed for a default of Rs.3,22,17,993/-, however, Corporate Debtor had paid a sum of Rs.1,50,00,000/- to the Operational Creditor thereafter, thus the present default was Rs.1,72,19,993/-. The operational creditor contended that since the default occurred prior to 25.03.2020, the Corporate Debtor could not take shelter behind Section 10A. It was held that the Corporate Debtor had neither paid the balance amount nor raised any dispute in respect of the quantity or the amount at any point of time. There being no pre-existing dispute, the Bench initiated CIRP against the Corporate Debtor and appointed Mr. Medi Yadaiah as the Interim Resolution Professional (IRP).
FULL TEXT OF THE NCLT JUDGMENT/ORDER
1. Under consideration before us is the petition filed by M/s. NSL Krishnaveni Sugars Ltd / Operational Creditor herein stating that M/s. Trident Sugars Limited / Corporate Debtor committed default of Rs.3,22,17,993/- . Hence, this petition is filed under Section 9 of Insolvency & Bankruptcy Code, 2016, R/w Rule 6 of Insolvency & Bankruptcy (Application to the Adjudicating Authority) Rules, 2016, seeking admission of the Petition, commencement of Corporate Insolvency Resolution Process, granting moratorium and appointment of Interim Resolution Professional as prescribed under the Code and Rules thereon.
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