The Tax Publishers 2018 TaxPub(CL) 0738 (NCLAT-Chd) : (2018) 148 SCL 0234

 

Deltas Pharma v. Life Essential Personalcare (P) Ltd.

 

INSOLVENCY AND BANKRUPTCY CODE, 2016,

--Initiation of corporate insolvency resolution process by operational creditor --No reply to demand noticeFulfillment of pre-requisite condition of section 4(1) --Petition for initiation of CIRP maintainable --Where amount involved in default was less than rupees one lakh, the pre-requisite condition for CIRP was not satisfied in view of section 4(1), thus, petition for initiation of CIRP was not maintainable.--Operational creditor sold pharmaceutical products to corporate debtor but corporate debtor failed to make payment of goods. Operational creditor served demand notice as per Form 3 of the Rules raising demand of Rs. 1,00,118 but corporate debtor neither repaid the outstanding amount nor disputed the dues of operational creditor within the prescribed period. Operational creditor filed petition under section 9 for initiation of CIRP. Corporate debtor submitted that as per its audited books of account, only an amount of Rs. 45,313 was outstanding on account of goods purchased, therefore, CIRP could not be triggered against it. Held: It was found that operational creditor raised debit notes amounting to Rs. 32,000 towards product approval but no new product was manufactured by operational creditor requiring any new licence or approval. Further, the operational creditor had not furnished any proof regarding payment to any competent authority. If the disputed amount of Rs. 32,000 was excluded from the claimed amount of Rs. 1,00,118, the petition could not be sustained. Further that, corporate debtor had sent a reply to the demand notice disputing the liability on valid ground. Since amount involved in default was less than rupees one lakh, therefore, the pre-requisite condition for CIRP was not satisfied in view of section 4(1). Hence, petition under section 9(5)(ii) was not maintainable.

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