CIRP plea against corporate debtor admitted as there was sufficient reason for proving existence of debt

  • News|Blog|Insolvency and Bankruptcy Code|
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  • By Taxmann
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  • Last Updated on 20 August, 2021

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Corporate insolvency resolution process

Case details: Varun Glass & Frit (P.) Ltd. v. Maruti Glaze Tiles (P.) Ltd. - [2021] 129 taxmann.com 143 (NCLT - Ahd.)

Judiciary and Counsel Details

    • Madan B. Gosavi, Judicial Member and Virendra Kumar, Technical Member.  
    • Arjun Seth Ld. Counsel, for the Appellant. 
    • Alkesh Jalan, Ld. Pcs, for the Respondent.

Facts of the Case

The present application is filed under section 9 of the Insolvency & Bankruptcy Code, 2016 by Operational Creditor M/s Varun Glass & Frit Pvt. Ltd. to initiate the Corporate Insolvency Resolution Process against Corporate Debtor M/s Maruti Glaze Tiles Private Limited for the default amount of Rs. 14,07,981/-including interest.

The operational creditor submitted that the operational creditor has supplied the ceramic Glaze to the corporate debtor and raised the invoices against the supplied goods, 14 invoices were raised by the operational creditor for the amount of Rs. 12,12,608/-. However, the corporate debtor made the payment of Rs. 1,00,000/- out of the said default amount. Even after several reminders and requests, he committed default.

Consequently, the operational creditor filed an instant petition to initiate the Corporate Insolvency Resolution Process against the corporate debtor.

NCLT Held

The NCLT noted that the corporate debtor had not denied that the amount was not due and the invoices raised by the operational creditor were well within the limitation period. Thus, the instant petition was defect-free and complied with all relevant provisions of the Code and, therefore, the same was to be admitted.

List of Cases Referred to

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