LOIWAL STEEL HOUSE Vs. VARADHA STEELS PRIVATE LIMITED

JUDGEMENT

(1.) Under adjudication is an Application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 (I & B Code 2016, for short) read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, by the Operational Creditor, the detailed grounds have been referred therein. The prayer made is to admit the Application and to initiate the Corporate Insolvency Resolution Process against the Corporate Debtor under the I & B Code, 2016.

(2.) The Operational Creditor has made a claim of Rs. 82,85,408.25p as principal amount and Rs. 39,76,992 as interest amount calculating at the rate of 18% [totaling Rs. 1,22,62,400.25p] against the Operational Creditor. The Operational Creditor has sent Notice under Section 8 of the I & B Code, 2016 on 27.02.2017 claiming the same amount under second bullet point at page 15 of the typed set of Application, to which the reply has been given by the Corporate Debtor on 08.03.2017, which is placed at page 21 of the typed set, wherein under para 9, it has been stated that the differential amount between the payments made by the Operational Creditor and the goods supply by the Corporate Debtor is Rs. 63,82,685.09 and not Rs. 82,85,408.25p. In other words, the Corporate Debtor has admitted the outstanding amount of Rs. 63,82,685.09p. The Operational Creditor has also submitted an Affidavit and Bank statement to make compliance with the provisions of Section 9(3)(b) and (c) of the I & B Code, 2016, which are placed at pages 11 & 12 and 158 onwards respectively, of the typed set of Application, which shows that the Corporate Debtor has neither raised any dispute nor paid the balance amount.

(3.) During the course of arguments, the Counsel for the Corporate Debtor was asked to explain the statement made by the Corporate Debtor under para 9 of its reply dated 08.03.2017. In response, the Counsel for the Corporate Debtor submitted that the said payment has been made to the sister concern, which is a firm, and also submitted that as per their mutual understanding, some payments have also been adjusted by the Corporate Debtor. But, the Counsel for the Corporate Debtor was unable to explain the admission made under para 9 of the reply to the notice wherein an amount of Rs. 63,82,685.09 was admitted as outstanding debt. Therefore, the defence of the Corporate Debtor stands rejected.