Ina Malhotra, Member - (1.) The present petition has been filed under the Section 9 of the Insolvency Bankruptcy Code 20.16 (herein after referred to as the Code). The petitioner has alleged to be an Operational Creditor, being engaged in the business of manufacture and supply LME 'A' Grade Copper Cathodes and Cast Copper Wire Rods. The Respondent/ Corporate Debtor had placed an order for supply of the products after accepting the general terms and conditions. The goods were sent against 3 Letters of Credit drawn on Indian Overseas Bank to be negotiated within a period of 120 days. The Operational Creditor supplied the required material, which is duly corroborated by the lorry receipts, pursuant to which they negotiated the letters of credit for collection of the amounts. At the request of the Corporate Debtor, the LCs were presented for negotiation through State Bank of India, Delhi Branch though initially they were restricted only to HDFC Bank. Upon amendment made to allow negotiation through any bank, the same was presented to the State Bank of India which did not discount them. On account of the technicalities, the letters of credit could not been encashed and the LCs lapsed in due course. The only recourse left to the Operational Creditor was to request the Corporate Debtor to pay the outstanding amounting to Rs. 32,67,395/--. Though the Corporate Debtor promised to renew the LCs, no further steps were taken to liquidate the aforesaid liability, constraining the Operational Creditor to invoke the provisions of the IBC. The Operational Creditor has raised the claim in terms of the general conditions for supply, which includes payment of interest @14% till 90 days and 18% from the 91st onwards. The debt claimed by the Operational Creditor is detailed as under:-
(2.) The present petition has been filed in the required format and has been instituted by a duly authorised person. Notiee as mandated under Section 8 has been issued accompanied by copies of the invoices and the dishonoured LCs. The provision of Section 9 (3) (b) and (c) of the Code have also been complied with.
(3.) Upon notice being served, the Respondent put in appearance through Mr. S. K. Paul, Advocate. No written reply was filed despite opportunity granted. However, during the course of arguments, the prayer made by the Operational Creditor has been resisted on the grounds that the LCs were presented beyond the period of that tenure. The delay in negotiating them is placed at the door steps of the Corporate Debtor who asked them to negotiate the LCs from HDFC to SBI which turned down the request.;