Utratech Cement Limited vs Schema Enterprises Private Limited

Chandra Bhan Singh, Member

This Company Petition is filed by Ultratech Cement Limited, (hereinafter called “Operational Creditorâ€) seeking to set in

motion the Corporate Insolvency Resolution Process (CIRP) against Schema Enterprises Private Limited (hereinafter called “Corporate Debtorâ€)

alleging that the Corporate Debtor committed default in making payment to the Operational Creditor in view of the invoices raised by them upon the

Corporate Debtor, by invoking the provisions of Section 9 of Insolvency and Bankruptcy Code (hereinafter called the “Codeâ€) read with Rule 6 of

Insolvency & Bankruptcy (Application to Adjudicating Authority) Rules, 2016.

The Operational Creditor is a Company registered under the Companies Act, 1956. The Operational Creditor is doing business manufacturing and

sale of various grades of Cements, Ready Mix Concrete, Building Products and Building Solutions.

During the routine course of business and as per Corporate Debtor’s request and orders, the Operational Creditor had time to time supplied the

material to the Corporate Debtor. The said material was duly received by the Corporate Debtor without raising any dispute and objection and for the

same the Operational Creditor had issued the invoices upon Corporate Debtor.

As per the accounts maintained by the Operational Creditor, the Corporate Debtor failed and neglected to pay the amount of Rs. 5,37,883/-

(Rupees Five Lakhs Thirty-Seven Thousand Eight Hundred and Eighty-Three only).

The Operational Creditor through its Advocate had issued Demand Notice dated 28.12.2018 under Insolvency and Bankruptcy Code, 2016 calling

upon the Corporate Debtor to pay the Operational Creditor a sum of Rs. 6,20,622/- comprising of n amount of Rs. 5,37,883/- being the amount of

invoices and the amount of Rs. 82,739/- being the interest amount calculated @ 18% per annum from due date of the invoices till 27.12.2018 within

ten days of receipt of the notice. The said notice was duly received by the Corporate Debtor on 31.12.2018.

The matter has been listed from time to time on board. Ample opportunity was given to the Corporate Debtor to file its reply. Not only the

Corporate Debtor failed to file a reply but also failed to make representation before this Bench. Therefore, the Corporate Debtor was set ex-parte

vide an order of this Bench dated 16.04.2021. Heard the counsel appearing for the Operational Creditor and perused the documents submitted by him.

The counsel for the Operational Creditor successfully demonstrated and proved the existence of debt and default. The debt is within limitation. Thus,

the Company Petition satisfies all the requirements for admission. Since the Corporate Debtor remained ex-parte even without filing any reply, the

claim of the applicant remained unchallenged. This Tribunal upon considering the arguments of the Operational Creditor and the documents, pass the

following:

ORDER

(a) The above Company Petition No. (IB) -3442(MB)/2019 is hereby allowed and initiation of Corporate Insolvency Resolution Process (CIRP) is ordered against

Schema Enterprises Pvt. Ltd.

(b) Since the Operational Creditor has not suggested the name of IRP to perform the duties of the Interim Resolution Professional (IRP) in the petition, this Bench is

appointing the IRP from the list furnished by the Insolvency and Bankruptcy Board of India (IBBI). This Bench hereby appoints Mr. Balaji Shrirang Sagar

(balajisagar381973@gmail.com), Insolvency Professional, Registration No: IBBI/IPA/IP-P01555/2018-2019/12441 as the interim resolution professional to carry out the

functions as mentioned under the Insolvency & Bankruptcy Code, 2016.

(c) The Operational Creditor shall deposit an amount of Rs.2 Lakh towards the initial CIRP cost by way of a Demand Draft drawn in favour of the Interim Resolution

Professional appointed herein, immediately upon communication of this Order.

(d) That this Bench hereby prohibits 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; transferring, encumbering, alienating or disposing of by the corporate

debtor any of its assets or any legal right or beneficial interest therein; 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;

the recovery of any property by an owner or lessor where such property is occupied by or in the possession of the Corporate Debtor.

(e) That the supply of essential goods or services to the Corporate Debtor, if continuing, shall not be terminated or suspended or interrupted during moratorium

period.

(f) That the provisions of sub-section (1) of Section 14 shall not apply to such transactions as may be notified by the Central Government in consultation with any

financial sector regulator.

(g) That the order of moratorium shall have effect from the date of pronouncement of this order till the completion of the corporate insolvency resolution process or

until this Bench approves the resolution plan under sub-section (1) of section 31 or passes an order for liquidation of corporate debtor under section 33, as the case

may be.

(h) That the public announcement of the corporate insolvency resolution process shall be made immediately as specified under section 13 of the Code.

(i) During the CIRP period, the management of the corporate debtor will vest in the IRP/RP. The suspended directors and employees of the corporate debtor shall

provide all documents in their possession and furnish every information in their knowledge to the IRP/RP.

(j) Registry shall send a copy of this order to the Registrar of Companies, Mumbai, for updating the Master Data of the Corporate Debtor.

Accordingly, this Petition is allowed.

The Registry is hereby directed to communicate this order to both the parties and to IRP immediately.