MECHANO ENGINEERING WORKS Vs. PROPEL VALVES PRIVATE LIMITED

JUDGEMENT

(1.) Under Consideration is a Company Petition filed by Mechano Engineering Works (in short, 'Petitioner/Operational Creditor') against Propel Valves Private Limited (in short, 'Respondent/Corporate Debtor') under section 433(e) and (f), 434(i)(a) and 439(i)(b) of the Companies Act, 1956 before the Hon'ble Madras High Court which has been transferred to this tribunal pursuant to the Companies (Transfer of Pending Proceedings) Rules, 2016. Now, pursuant to the Central Government notification number GSR 119(E) dated 07.12.2017, this petition needs determination as per the provisions of the Insolvency and Bankruptcy Code 2016 (In short, IB Code 2016).

(2.) Before proceeding with this matter, it would be appropriate to make a note of background facts for the purpose of determination of this petition.

(3.) Shri Ramakrishnan Viraraghavan, the learned senior counsel appearing on behalf of the petitioner/OC submitted that the Petitioner is in business of manufacturing industrial pipeline valves whereas the Respondent/CD is carrying on business as Manufacturers, dealers, importers & exporters of industrial valves made up of any metal. The petitioner has been manufacturing and supplying industrial valves and connected products with the trade name 'MEC' of which the respondent company is also aware. In the ordinary course of business, the petitioner/OC, based on faith and trust and on a running account basis, supplied its various products to the respondent/CD on credit basis that too when the respondent was facing a severe credit shortage. It is also submitted that the respondent received and acknowledged the goods without raising any disputes with regard to rates, quality and quantity of the products supplied by the petitioner.