KAMAL CHAND Vs. AVADH RAIL INDIA LIMITED

JUDGEMENT

(1.) Under consideration is an application filed under Section 9 of the I & B Code, 2016 read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 (The Rules) by Mr. Kamal Chand (the operational Creditor) against M/s. Avadh Rail Infra Limited formerly known as M/s. Madras Elastomers Limited (the Corporate Debtor) , having its registered office at P.A.S. Industrial Complex, Maraimalai Nagar, Kanchipuram - 603 209.

(2.) The brief averments inter-alia made in the application are that the service of the Applicant, the Operational Creditor herein was terminated by the Respondent Company within a year and being aggrieved by such termination from service, the Applicant has filed a Civil Suit in C.S. No. 429/2000 before the High Court of Madras praying for compensation. The said suit was decreed by the High Court vide its order dated 7.06.2011 and the Respondent was directed to pay Rs. 23,24,938.12/- with further interest at the rate of 6% p.a on the sum of Rs. 11,59,000/- from the date of decree till the date of realisation. Since the Respondent Company is unable to pay its debt as decreed, the present Application is filed before this Tribunal praying for an order to commence the Corporate Resolution Process against the Respondent Company.

(3.) The Corporate Debtor has filed its Counter and inter-alia submitted that it had filed an appeal in OSA No. 123 of 2012 and with a condition that the Respondent should deposit a sum of Rs. 10 lakhs to the credit of the appeal, the High Court has stayed the operation of the order made in CS No. 429/2000. Subsequently the appeal was dismissed for default and a restoration petition was filed by the Respondent and it is pending before the High Court. A sum of Rs. 10 lakh deposited by the Respondent was appropriated by the Applicant. The Respondent Company further submitted that the debt is wholly denied and the action of the Applicant is an abuse of process of law and no orders could be passed on the basis of disputed claim. Therefore, the Corporate Debtor has prayed for dismissal of the application.