VIRAJ PROFILES LIMITED Vs. KINETIC ENGINEERING LIMITED

JUDGEMENT

(1.) It is a Company Petition filed u/s. 9 of the Insolvency and Bankruptcy Code, 2016 by the Operational Creditor, viz. Viraj Profiles Ltd. against the Corporate Debtor, viz. Kinetic Engineering Limited for initiation of the Insolvency Resolution Process on the ground that the Corporate Debtor defaulted in making repayment of Rs. 30,62,106.25/- as on 31.1.2017.

(2.) The case of the Petitioner Counsel herein is that the applicant supplied steel rods to the Corporate Debtor. In pursuance thereof, the applicant raised invoices against the Corporate Debtor on 26.3.2014, 12.1.2015 and 27.7.2015, for an aggregate amount of Rs. 39,62,472.64/-. For the Corporate Debtor having failed to repay the balance outstanding Rs. 20,56,572.25 as on 25.9.2015, the Petitioner has filed this Company Petition for a principal amount of Rs. 20,56,572.25/-, plus interest of Rs. 10,05,534/-, calculated @ 24% per annum. When this Petitioner, on 3.2.2017, sent notice u/s. 8 of the Insolvency and Bankruptcy Code, 2016 to the Corporate Debtor, mentioning that the Corporate Debtor, as on 31.1.207, defaulted in making repayment of Rs. 30,62,106.25/-, to which, this Corporate Debtor gave reply on 16.2.2017, stating that there is huge discrepancy in the outstanding amount claimed by the Petitioner. Therefore, the reply notice has been sent saying that accounts are to be reconciled to ascertain the exact amount payable to the Petitioner, besides that, the Corporate Debtor categorically mentioned that the Company never agreed to pay 24% interest on the purported principal amount mentioned in the notice sent u/s. 8 of the IB Code.

(3.) Now the case of the Petitioner is that it is entitled not only for the principal amount of Rs. 20,56,572.25/-, but also for interest of Rs. 10,05,534/- @ 24% per annum, basing on the order of confirmation/proforma invoice. On perusal of these documents, it appears that this invoice has not been signed either by the Petitioner or the Corporate Debtor. Therefore, this Bench is of the view that these documents are of no use to say that the Petitioner is entitled for 24% interest over the principal amount mentioned in the Form filed by the Petitioner.