SREE PROVISIONS STORES Vs. ANNAMALAI FOODS PVT LTD

JUDGEMENT

(1.) Under adjudication is CP/94/(IB) /CB/2018 that has been filed by the Operational Creditor under Section 9 of the Insolvency & Bankruptcy Code, 20 Id (I&B Code, 2016) r/w the Insolvency & Bankruptcy (Application to Adjudicating Authority Rules, 2016) . The prayer made is to admit the Application, to initiate the Corporate Insolvency Resolution Process against the Corporate Debtor, declare moratorium and appoint Interim Resolution Professional (IRP) under the I&B Code.

(2.) Heard the Counsel for the Operational Creditor and PCS for the Corporate Debtor, and perused the documents placed record.

(3.) The Operational Creditor has claimed the outstanding amount to the tune of Rs. 16,83,884/-. The brief facts of the case are that the Operational Creditor is a Small Scale Dealer and during their course of business, the Corporate Debtor had approached the Operational Creditor for supply of provisions for their restaurants. Based on the assurances of the Corporate Debtor, the Operational Creditor had supplied the provisions on various dates and raised invoices for the same. However, the Corporate Debtor had committed a default in making payments. The Corporate Debtor has issued letter dated 05.08.2017 enclosing five post-dated cheques bearing Nos.096631, 096613, 096630, 096632 and 096633 that were to be drawn on Axis Bank Ltd. But, the same were dishonoured on presentation. The copies of four cheques have been placed at pages 76, 77, 78 and 78A of the typed set filed with the Application.