HAJURA SINGH BHIM SINGH Vs. BEST FOODS LIMITED

JUDGEMENT

(1.) This petition has been filed by M/s Hajura Singh Bhim Singh, a sole proprietorship concern claiming itself to be the 'operational creditor', under Section 9 of the Insolvency & Bankruptcy Code, 2016 (for short to be referred here-in-after as the 'Code') read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 (for brevity the 'Rules) for initiating the insolvency resolution process against the respondent-corporate debtor. The petitioner has been granted the license as a commission agent by the Executive Officer-cum-Secretary, Market Committee, Jind in the State of Haryana under the Punjab Agricultural Produce Market Act, 1961 and the Rules framed thereunder. Copy of the license is at Annexure A-1 which shows that it was issued on 01.04.2003 and is being renewed from time to time. Lastly the license was renewed upto 31.03.2018.

(2.) Application has been filed by the petitioner in Form No.5 as prescribed in sub-rule (1) of Rule 6 of the Rules. The respondent company was incorporated on 25.03.2003 and is having the authorised share capital of Rs. 1,92,00,00,000 and paid up share capital of Rs. 1,91,40,00,000/-. It has its registered office at Chandigarh, therefore, the matter falls within the jurisdiction of this Tribunal. The respondent is exporter of rice and paddy.

(3.) The facts of the case briefly stated are that the respondentcorporate debtor placed the order for purchase of paddy from petitioner. The paddy was supplied to the respondent during the paddy season from 21.11.2014 to 21.12.2014. The total quantity of paddy sold to the respondent was 1683 quintals (Qtls) for the total price of Rs. 47,26,788.34. The corporate debtor is alleged to have made part payment of Rs. 39,52,749/- against the invoices raised by the operational creditor. Out of the above payment, an amount of Rs. 27,76,786/- was paid as the principal amount and Rs. 11,75,963/- towards the interest as per the agreed terms. The petitioneroperational creditor is a commission agent and a middleman who used to procure the paddy from farmers to be supplied as per the demand in the open auction. As a commission agent, the petitioner was to get 2.5% of commission from every transaction. Along with that, the operational creditor was also to receive 18% interest per annum on the pending payments. The 'operational creditor' has already made the payment to the farmers of his own. The invoices raised by the petitioner include the amount paid to the farmers, commission of the operational creditor, labour and association commission.