Minsa Tech (India) Private Limited vs Archana Motors Private Limited

Ch. Mohd. Sharief Tariq, J

Under Adjudication is IBA/133/2019 that has been filed by the Operational Creditor under Section 9 of the Insolvency & Bankruptcy Code 2016 (in

short, ‘I&B Code, 2016’) r/w Rule 6 of 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).

As seen from the record, in spite of sufficient opportunity, the Corporate Debtor has neither filed Reply nor represented through its Counsel or its

own, and the Corporate Debtor was proceeded ex parte, on 18.06.2019

Heard the Representative for the Operational Creditor and perused the record placed on file.

The Operational Creditor has claimed an amount of Rs. 7,99,745/- as outstanding against the Corporate Debtor as on 07.11.2017, which the

Corporate Debtor failed to pay.

The brief facts of the case are that the Operational Creditor had supplied various grades of special oil such as Valvoline All Fleet Premium,

Valvoline All Fleet Gold and Valvoline LMP Greese NLG etc., to the Corporate Debtor based on the Purchase Orders issued by the Corporate

Debtor. In this connection, the Representative for the Operational Creditor has referred to an e-mail communication dated 30.10.2017 sent by the

Operational Creditor to the Corporate Debtor which contains the stipulations for supply of materials. Copy of e-mail communication is placed at page

18 of the typed set filed with the Application.

The Operational Creditor had raised Invoices on the Corporate Debtor for the supplies made. The Invoices are placed at pages 23 to 34 of the

typed set filed with the Application. No dispute was raised by the Corporate Debtor at any point of time with respect to the goods supplied.

The Representative for the Operational Creditor has referred to the letter dated 10.07.2018 placed at page 10 of the typed set filed with the

Application which was sent by the Corporate Debtor to the Operational Creditor wherein the Corporate Debtor has agreed to clear the outstanding

amount on or before 31.07.2018. Besides that, the Representative for the Operational Creditor has referred to the e-mail communications exchanged

between the Operational Creditor and the Corporate Debtor on various dates which are placed at page 14 of the typed set filed with the Application.

The Operational Creditor has sent a Demand Notice dated 25.06.2018 under Section 8 of the I&B Code, 2016 to the Corporate Debtor, wherein

the amount claimed and the date of default are being mentioned, which has been delivered on 28.06.2018, copies of which are placed at additional

typed set filed with the Application. The Corporate Debtor has not given any Reply to the Demand Notice.

The Operational Creditor has complied with Section 9(3)(b) & (c) of I&B Code, 2016, by filing Affidavit, wherein under Para iii, it has been

deposed that the Operational Creditor has not received any notice from the Corporate Debtor regarding existence of any dispute relating to the unpaid

operational debt. The Affidavit is placed at page 6 of the typed set filed with the Application. The statement of accounts issued by India Bank is

placed at pages 35 to 104 of the typed set filed with the Application.

The Operational Creditor has fulfilled all the requirements of law for admission of the Application. This Authority is satisfied that the Corporate

Debtor has committed default in making payment of the outstanding debt claimed by the Operational Creditor. Therefore, Application is admitted and

the commencement of the Corporate Insolvency Resolution Process is ordered, which ordinarily shall get completed within 180 days, reckoning from

the day this order is passed.

The moratorium is declared which shall have effect from the date of this Order till the completion of Corporate Insolvency Resolution Process, for

the purposes referred to in Section 14 of the I&B Code, 2016. It is ordered to prohibit all of the following, namely:â€

(a) The institution of suits or continuation of pending suits or proceedings against the corporate debtor including execution of any judgment, decree or

order in any court of law, tribunal, arbitration panel or other authority;

(b) Transferring, encumbering, alienating or disposing of by the corporate debtor any of its assets or any legal right or beneficial interest therein;

(c) Any action to foreclose, recover or enforce any security interest created by the corporate debtor in respect of its property including any action

under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (54 of 2002);

(d) The recovery of any property by an owner or lessor where such property is occupied by or in the possession of the corporate debtor.

The supply of essential goods or services of the Corporate Debtor shall not be terminated or suspended or interrupted during moratorium period.

The provisions of Sub-section (1) of Section 14 shall not apply to such transactions, as notified by the Central Government.

Mr. Ashok Seshadri, is hereby appointed as IRP, as has been proposed by the Operational Creditor. There is no disciplinary proceeding pending

against the IRP as is evidenced from Form-2. The IRP is directed to take charge of the Corporate Debtor's management immediately. The IRP is

also directed to cause public announcement as prescribed under Section 15 of the I&B Code, 2016 within three days from the date the copy of this

Order is received, and call for submissions of claim by the creditors in the manner as prescribed.

The IRP shall comply with the provisions of Sections 13(2), 15, 17 & 18 of the I&B Code. The directors of the Corporate Debtor, its promoters or

any person associated with the Management of the Corporate Debtor are/is directed to extend all assistance and cooperation to the IRP as stipulated

under Section 19, so that he could discharge his functions under Section 20 of the I&B Code, 2016.

The Operational Creditor and the Registry are directed to send the copy of this Order to IRP, so that he could take charge of the Corporate

Debtor's assets etc., and make compliance with this Order as per the provisions of I&B Code, 2016.

The Registry is directed to communicate this Order to the Operational Creditor, the Corporate Debtor and the concerned RoC. The address details

of the IRP are as follows:â€

Mr. Ashok Seshadri,

Reg. No. IBBI/IPA-001/IP00937/2017-2018/11541

F2, Geekay Mahalakshmi,

100 feet Road, Lakshmi Nagar,

Nanganallur, Chennai - 600 061.

Mobile No. 97896 72486

Order is pronounced in open Court.