V. Nallasenapathy, Member - (1.) This is an Insolvency and Bankruptcy Petition filed by the Operational Creditor who had entered into a Vendor Agreement on 20.3.2015 with the Corporate Debtor alleging that the Corporate Debtor has defaulted in making payment of Rs. 1,28,75,390 and hence invoking the provisions of the IB Code for initiation of Corporate Insolvency Resolution Process against the Corporate Debtor.
(2.) The Vendor Agreement dated 20.3.2015 provides that the Operational Creditor will promote, advertise, market and sell its products bearing the trade mark ALCHEMANE through the digital commerce platform of the Corporate Debtor. The Corporate Debtor will receive orders and collect payment from the customers on behalf of the Operational Creditor in respect of the products of the Operational Creditor sold through the Corporate Debtor's digital commerce platform. Accordingly, the Operational Creditor regularly delivered the ordered quantity of products to the Corporate Debtor's notified warehouse on consignment basis and the Corporate Debtor used to sell those products on behalf of the Operational Creditor through the Digital Commerce platform of Corporate Debtor. The Vendor Agreement provides that for the products delivered to the customers between 1st and 31st of the given month the payment collected by the Corporate Debtor on behalf of the Operational Creditor has to be paid to the Operational Creditor on 15th of the following month net of service charges for platform fees as agreed in the Deal Note on 15th of the following month.
(3.) The Operational Creditors further states that, in terms of the Agreement, the Operational Creditor need not raise any invoice on the Corporate Debtor but a ledger transaction sheet was to be periodically circulated recording the product sold by the Corporate Debtor, the price at which the products has been sold, the commission charged by the Corporate Debtor. The Corporate Debtor used to circulate and share the ledger statement with the Operational Creditor giving the details of products sold, price of products and adjustment of amount received from the sale of product. The Corporate Debtor used to raise separate invoice on the Operational Creditor with respect to the commission charged by the Corporate Debtor on the sale of the products. The Operational Creditor states that the Corporate Debtor has made payment till 24.11.2015 but thereafter defaulted to make payment for the products sold by the Corporate Debtor despite receiving payments from the customers on behalf of the Operational Creditor. The Operational Creditor states that a sum of Rs. 1,28,75,390 is defaulted as on 1.12.2016 and the Operational Creditor further states that the Corporate Debtor is liable to pay interest @ 18% per annum from 1.12.2016 till the realisation.;