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

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.