RIO GLASS SOLAR SA Vs. SHRIRAM EPC LTD

JUDGEMENT

(1.) Under adjudication is an application that has been filed by M/s. Rio Glass Solar SA (Operational Creditor) represented by its Power of Attorney Agent, Mr. Jose Maria Villanueva Fernandez, Poligno Industrial Villallana, S/N, 33695, Pola De Lana, Asturias, Spain against M/s. Shriram EPC Limited (Corporate Debtor), 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. The Application has been filed to initiate Corporate Insolvency Resolution Process against the Corporate Debtor on account of the default made in making payment of the outstanding debt to the tune of EUR 4,151,570.52 plus interest of EUR 251,028.18 along with expenses for the Arbitral Award dated 12.02.2015 [USD 87000 with simple interest at 3.5% p.a.]

(2.) The Operational Creditor has demanded the outstanding debt on account of "delivery 4" being 41,850 parabolic mirrors, which were not collected and had been stored by the Operational Creditor after manufacturing. The Operational Creditor had requested for Arbitration dated 14.05.2013 and after due contest, the Arbitral Tribunal was pleased to award in favour of the Operational Creditor dated 12.02.2015 which has become final and binding on the Corporate Debtor.

(3.) The Corporate Debtor has challenged the Award in OP No. 625/2015 before Hon'ble High Court of Madras and the High Court vide its order dated 27.09.2016 has dismissed the Petition holding that under Section 34 of the Arbitration and Conciliation Act, 1996 the challenging of the Award dated 12.2.2015 is not maintainable. It is also on record that the Operational Creditor has filed a Petition under Section 47 of the Arbitration and Conciliation Act, 1956 to pass an order that the foreign award dated 12.2.2015 be deemed to be a decree of the court and a direction to enforce and execute the said Award as decree in favour of the Operational Creditor and against the Corporate Debtor.