Application under Section 9 IB Code for CIRP was dismissed. The Tribunal held insufficient evidence existed as the applicant failed to provide properly raised Tax invoices for work done, rejecting claims based on proforma invoices.
The Company Petition seeking to initiate CIRP against the Corporate Debtor is dismissed.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE NATIONAL COMPANY LAW TRIBUNAL, MUMBAI BENCH, COURT - II
C.P. (IB)- 3079 (MB)/ 2018
Under Section 9 of the Insolvency and Bankruptcy Code, 2016 read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudication Authority) Rule 2016)
In the matter of
S N Engineers
Having its registered office at: Shop no. 11, Nishant Arcade, Sector 17, Koparkhairane, Navi Mumbai, Maharashtra- 400 709. ……Operational Creditor
Vs
Vedant Dyestuffs Intermediaries Private Limited
(CIN No.: U24100MH1993PTC073203) Having its Registered Office at: 301-306, Neelkanth Commercial Centre, 122/123, Sahar Road, Andheri (E), Mumbai, Maharashtra- 400 099.
..…..Corporate Debtor
Order delivered on:- 14.10.2022
Coram:
Hon’ble Member (Judicial) : Justice P. N. Deshmukh (Retd.) Hon’ble Member (Technical) : Mr. Shyam Babu Gautam
Appearances:
For the Operational Creditor : Ms. Ruchi Thakur, Advocate
For the Corporate Debtor : Mr. Mustafa Kachwala, Advocate
IN THE NATIONAL COMPANY LAW TRIBUNAL, MUMBAI BENCH, COURT - II
C.P. (IB)- 3079 (MB)/ 2018
ORDER
Per :- Shyam Babu Gautam, Member Technical
Page 2 of 6
C.P. (IB)- 3079 (MB)/ 2018
IN THE NATIONAL COMPANY LAW TRIBUNAL, MUMBAI BENCH, COURT - II
invoices out of which 26 Tax invoices were raised after completion of the work done against Purchase Orders raised by the Corporate Debtor and 18 Proforma invoices were raised against work done by the Operational Creditor on the basis of quotations without any actual Purchase order being issued by the Corporate Debtor. The nature of business between the parties was such that the Operational Creditor used to issue Proforma invoices upon which the Corporate Debtor used to raise Purchase orders in respect of specific work post which the said work was executed accordingly. Thereafter upon executing the work, the Operational Creditor used to raise final invoices against which payments were made by the Corporate Debtor after conducting due scrutiny of the said work and invoices.
Page 3 of 6
IN THE NATIONAL COMPANY LAW TRIBUNAL, MUMBAI BENCH, COURT - II
C.P. (IB)- 3079 (MB)/ 2018
amount and stated that all pending dues have already been paid off. Due to non-receipt of any payments from the Corporate Debtor within the stipulated time, the Operational Creditor filed this Petition on 14th August 2018 . Copies of the Demand Notice and Reply have been annexed to this Petition.
FINDINGS
Page 4 of 6
IN THE NATIONAL COMPANY LAW TRIBUNAL, MUMBAI BENCH, COURT - II C.P. (IB)- 3079 (MB)/ 2018
Page 5 of 6
IN THE NATIONAL COMPANY LAW TRIBUNAL, MUMBAI BENCH, COURT - II
C.P. (IB)- 3079 (MB)/ 2018
further consideration by a competent court and have to be dealt with accordingly. Therefore, in our view, there is insufficient evidence to prove the existence of operational debt since the Operational Creditor is unable to provide properly raised Tax invoices to support their claim.
The Registry is hereby directed to communicate this order to both the parties immediately.
Sd/-
Sd/-
SHYAM BABU GAUTAM JUSTICE P. N. DESHMUKH (MEMBER TECHNICAL) (MEMBER JUDICIAL)
AN
14.10.2022
Page 6 of 6
2 issues framed by the court
Whether there is a pre-existing dispute between the parties affecting the claim for operational debt.
Whether the applicant was able to provide properly raised Tax invoices to establish the existence of operational debt.
2 provisions across 2 enactments
S N Engineers
Shyam Babu Gautam
P. N. Deshmukh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
