M/S Ultimate Infracity Pvt. Ltd. vs M/S Paramount Propbuild Pvt. Ltd. And Ors.

The present application is filed under Section 9 of Insolvency and Bankruptcy Code, 2016 (for brevity ‘IBC, 2016’) read with Rule 6 of the

Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 (for brevity ‘the Rules’) by M/s Ultimate Infracity Pvt. Ltd. (for

brevity ‘Applicant’), through Sh. Naresh Kumar who is an authorized signatory vide Board resolution dated 23.03.2018, with a prayer to initiate

the Corporate Insolvency process against M/s Paramount Propbuild Private Limited (for brevity ‘The Company’).

The Applicant, the Operational Creditor namely M/s Ultimate Infracity Private Limited is a company incorporated under the provisions of

Companies Act, 1956 having CIN No. 45400DL2013PTC248362.

The company is having its registered office at 510, 5th floor, Plot No. 18, Ashish Corporate Tower, Karkardooma Community Centre,

Karkardooma, New Delhi-110092.

The Respondent, the Corporate Debtor namely M/s Paramount Propbuild Private Limited is a company incorporated on 17.08.2010 under the

provisions of Companies Act,1956 with CIN No. U70109DL2010PTC207149.

The company is having its registered office at 208, Second Floor, Sikka Mansion LSC, Savita Vihar, Delhi-110092.

The Authorised Share Capital of the respondent company is Rs. 9,00,00,000/- and Paid Up Share Capital of the company is Rs. 8,76,00,000/- as per

Master Data of the company.

It is the case of the Applicant that respondent company approached the applicant company regarding purchase of “Big Flyash Brick†and

inquired about the prices of the Product. Pursuant to the negotiations and considerations, the Applicant and Respondents developed a business relation

whereby the applicant used to supply the product according to the demands raised by the respondents.

The applicant has further submitted that during the course of business, applicant has supplied Big Flaysh Bricks to respondent company, and

pursuant thereto various invoices were raised by the Operational Creditor from time to time subsequent to the challans, bearing no. 1951 to 1992 for

period 2015 upto 2017.

The applicant has further submitted that applicant has duly furnished the aforementioned tax invoices after delivery of the goods and the same were

also acknowledged by the Respondents on presentation.

The applicant has stated that the respondents made the partial payments against the invoices in the year 2016-2017 but did not clear the total

outstanding at any occasion even though several requests were made by the applicant.

The applicant has stated that total debt due and payable by the Corporate Debtor to the applicant is Rs. 1,41,21,697/- inclusive of interest at the

rate 18% per annum as on 25.05.2018.

Inspite of various requests made and reminders sent to the Corporate Debtor by the Applicant vide telephonic conversations and whatsaap chat,

the Company has neither paid nor responded to the applicant.

The Applicant from time to time requested the Corporate Debtor to clear the outstanding amount, however, Corporate Debtor neglected and failed

to pay the unpaid debt of the Applicant. Since no payment was forthcoming hence a notice under Section 8 of the Insolvency and Bankruptcy Code

was issued on 02.04.2018 to the Corporate Debtor.

The Corporate Debtor has duly deposited TDS on the said outstanding bills and has never disputed in any of their replies with respect to the debt.

On the contrary, they sought time to deal with the issue which is not submitted till date.

Despite the demand notice sent under Section 8 of the Code, the Corporate Debtor has failed to pay the amount demanded nor has replied to the

demand notice raising any dispute, hence this application, seeking to unfold the process of CIRP.

This Tribunal is constrained to proceed with the matter exparte in relation to the Corporate Debtor since Corporate Debtor has not appeared

though Section 8 notice and the present application duly served on the Corporate Debtor and proof of service along with service affidavit is filed by

the applicant making the service complete.

The applicant has attached the copy of the Ledger Account statement from 15.05.2015 to 30.06.2017 maintained by the applicant showing all the

transactions between the applicant and the company and reflecting claim amount of Rs. 99,44,857/- against the respondent company as on 30.06.2017.

Relying on the order dated 15.12.2017 passed by Hon’ble Supreme Court in the matter of Macquarie Bank Limited Vs. Shilpi Cable Technologies

Ltd the requirement of Section 9(3)(c) can be dispensed.

The default in payment of operational debt became due and payable from the date of the invoice dated 30.06.2017 raised by the Applicant. Hence,

the debt is not time barred.

The registered office of corporate debtor is situated in New Delhi and therefore this Tribunal has jurisdiction to entertain and try this application.

In the given facts and circumstances, the present application is complete and the Applicant is entitled to claim its dues, establishing the default in

payment of the operational debt beyond doubt, and fulfillment of requirements under section 9(5) of the Code. Hence, the present application is

admitted.

As a consequence of the application being admitted in terms of Section 9(5) of IBC, 2016 moratorium as envisaged under the provisions of Section

14(1) and as extracted hereunder shall follow in relation to the Corporate Debtor prohibiting all of the following:

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 Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 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.

However, during the pendency of the moratorium period in terms of Section 14(2) and 14(3) as extracted hereunder:

(2) The supply of essential goods or services to the corporate debtor as may be specified shall not be terminated or suspended or interrupted during

moratorium period.

(3) The provisions of sub-section (1) shall not apply toâ€

a. such transaction as may be notified by the Central Government in consultation with any financial sector regulator.

b. a surety in contract of guarantee to a Corporate Debtor.

(4)The order of moratorium shall have effect from the date of this order till the completion of the corporate insolvency resolution process, provided

that where at any time during the corporate insolvency resolution process period, if the Adjudicating Authority approves the resolution plan under sub-

section (1) of section 31 or passes an order for liquidation of corporate debtor under section 33, the moratorium shall cease to have effect from the

date of such approval or liquidation order, as the case may be.

In terms of above order, the Application stands admitted in terms of Section 9(5) of IBC, 2016.

The Operational Creditor has not proposed the name of any Interim Resolution Professional. In view of the same, this Bench appoint Mr. Vijender

Sharma having registration no. IBBI/IPA-003/IP-N00003/2016-17/10022 having email address vijender@vsa.net.in as the IRP of the Corporate

Debtor. The IRP is directed to take all such steps as are required under the statute, more specifically in terms of Sections 15,17,18,20 and 21 of the

Code.

A copy of the order shall be communicated to the Applicant as well as to the Corporate Debtor above named by the Registry. Further the IRP

above named be also furnished with copy of this order forthwith by the Registry. In addition, a copy of the order shall also be forwarded to IBBI for

its records.