NEERAJ PAPERS AGENCIES LTD Vs. RAINBOW PAPERS LTD

JUDGEMENT

(1.) Neeraj Paper Agencies Ltd., styling itself as Operational Creditor, filed this Application under Section 9 of the Insolvency and Bankruptcy Code, 2016 ["IB Code" for short] read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, ("IB Rules" for short) with a request to initiate Corporate Insolvency Resolution Process against Rainbow Papers Limited, which is a Registered Company having its Registered Office in Ahmedabad treating it as 'Corporate Debtor'.

(2.) Applicant is a Company registered under the Companies Act, 1956. Respondent is also a Company registered under the Companies Act. Respondent is engaged in the business of manufacture of papers like news print, coated duplex board, file board, writing paper etc. Applicant is engaged in the business of all kinds and classes of paper, paper board and paper pulp and supplying waste paper as raw material for manufacture of paper. Accordingly, Applicant delivered to the Corporate Debtor from time to time waste paper as per the Invoices raised. As per the terms and conditions in the Invoices different due dates are fixed for payment. As per the Invoices, in case of default in payment of amount within due date the Invoice amount shall carry interest at the rate of two per cent. Respondent failed and neglected to pay an amount of Rs. 1,26,26,479/- under various Invoices which include interest payable at the rate of 2% per month. The said amount is due and payable by the Respondent.

(3.) Applicant issued Demand Notice dated 3rd March, 2017 in Form-3 to the Corporate Debtor. Corporate Debtor gave reply admitting the debt by letter dated 27th March, 2017. According to the Applicant, each Invoice had a particular date for payment. Therefore, Applicant filed detailed Working as to on which date debt fell due as per each Invoice as 'Exhibit E' to the Application. The Computations of Interest at 2% per month are annexed as 'Exhibits 'F' and 'G' to the Application. According to the Applicant, it is annexed as 'Annexures 'A', 'B' and 'C' to the Demand Notice dated 3rd March, 2017. It is stated by the Applicant that along with the Demand Notice dated 3rd March, 2017 it has annexed Annexures 'A', 'B' and 'C' and they correspondent to Exhibits 'E', 'F' and 'G' of the Application. Applicant also filed Additional Affidavit along with copy of the Resolution passed by the Board of Directors of Neeraj Paper Agencies Ltd., held on 7th February, 2017 whereby it was resolved to appoint and authorise J. Sagar Associates, Advocates, Mumbai to issue Demand Notice to Rainbow Papers Limited, Ahmedabad (Respondent) under Section 8 of the IB Code read with the IB Rules.