PITAMBARA ENTERPRISES Vs. VALEDA HERBALS PVT LTD

JUDGEMENT

(1.) This is an application filed under section 9 of the Insolvency and Bankruptcy Code, 2016 (for brevity 'the code') read with rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rule, 2016 (for brevity 'the rule') with a prayer for initiation of Corporate Insolvency process in respect of Respondent corporate debtor.

(2.) It is pertinent to mention here that on the first date of hearing on 31.05.2017 notice was ordered to be served on the Respondent Corporate Debtor. Subsequently respondent company put in appearance and defended the application by filing its reply on 04.07.2017.

(3.) It is the case of the applicant that the applicant operational creditor was appointed by the corporate debtor as its super stockiest for Chandigarh, Punjab, Haryana and Himachal Pradesh in terms of appointment letter dated 12.11.2013. The corporate debtor agreed to give a margin of 8% plus 2% (transportation) of the company invoice value to the operational creditor. As per the terms of the payment, the first supply of the products by the corporate debtor to the operational creditor was on advance payment and future payments would be through post-dated cheques of maximum 21 days credit. It is submitted that the operational creditor accordingly remitted a sum of Rs. 6,00,000/- to the bank account of the corporate debtor on 15.11.2013 against supply of products.