NCLT admits CIRP plea as operational creditor adequately proved the existence of debt and default by corporate debtor

  • News|Blog|Insolvency and Bankruptcy Code|
  • < 1 minute
  • By Taxmann
  • |
  • Last Updated on 15 July, 2021

Corporate Insolvency Resolution Process CIRP

Case details:  Emgreen Impex Ltd. v. ANR International (P.) Ltd. - [2021] 128 taxmann.com 68 (NCLT - New Delhi)

Judiciary and Counsel Details

    • P.S.N. Prasad | Judicial Member and Dr. V.K. Subburaj | Technical Member 

Facts of the Case

In the instant case, a petition was filed by the Operational Creditor seeking to initiate CIRP against Corporate Debtor for the alleged default on the part of the Corporate Debtor in settling an amount of Rs. 1,12,99,101/- along with interest of Rs. 33,76,950/- as on the date of default towards the goods supplied by the Operational Creditor.

A Demand notice under section 8 under the Insolvency and Bankruptcy Code, 2016 was issued by the operational creditor. In reply, the corporate debtor claimed that no amount was due and payable by it to the operational creditor, and on the contrary operational creditor owed Rs. 1.13 crore towards the supply of certain goods by it.

The Operational creditor countered the argument of the corporate debtor and alleged that neither goods as claimed to be supplied by the corporate debtor were delivered to it nor corporate debtor provided any proof of delivery of said goods. In addition, the Operational creditor provided adequate documentary evidence to prove his allegation.

NCLT Held

Since, the operational creditor had adequately proved the existence of debt and default on part of the corporate debtor, the application to initiate CIRP against the corporate debtor was to be admitted.

Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.

Leave a Reply

Your email address will not be published. Required fields are marked *

Everything on Tax and Corporate Laws of India

To subscribe to our weekly newsletter please log in/register on Taxmann.com

Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied