Bikki Raveendra Babu, Member - (1.) M/S. VRV Asia Pacific Private Limited (hereinafter called as "Petitioner") filed this Application under Section 9 of the Insolvency and Bankruptcy Code, 2016 ["IB Code" for short] read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, ("IB Rules" for short) with a request to initiate Corporate Insolvency Resolution Process in respect of M/s. Cryogas Equipment Private Limited (hereinafter called as "Respondent") .
(2.) The Respondent on 14.4.2016 placed a purchase order for 3 (three) numbers of LNG Tanks with the Petitioner. The price agreed was Rs. 32,50,000/- + ED+CST for purchase of three Tanks. The price of 1st Tank was Rs.35,00,000/- plus Taxes which was billed; the price of 2nd Tank was Rs. 35,00,000/- plus Taxes which was billed; and the price of 3rd Tank was Rs. 27,50,000/- plus Taxes which was billed. The terms of payment are 10% in advance and balance by 45 days credit. The freight had to be arranged by the Respondent. The delivery of the 1st Tank was to be made by 3rd of May. The balance two Tanks were to be be lifted as and when required by Respondent before 31st December, 2016 with 3.5 to 4 w months' advance intimation from Petitioner to make the Respondent ready with 10% advance for respective Tank. With the above said stipulations, LOI dated 14.4.2016 and Purchase Order dated 14.4.2016 were executed by the Respondent and placed with the Petitioner.
(3.) The Petitioner by E.Mail dated 27th May, 2016 informed the Respondent that the 1st Tank will be completed on 31st may, 2016 and requested the Respondent to inspect the Tank and provide draft LC for balance payment as per the terms. Thereafter, Petitioner issued several reminders on 30th May, 2016 and 2nd June, 2016. Petitioner had also telephonic discussion with the Respondent on 7th June, 2016. Respondent stated that the Tank will be lifted by 14th June, 2016. On 29th August, 2016, Petitioner informed the Respondent that storage charges and interest for delayed payment will be made applicable from 16th June, 2016 onwards due to delay in payment. On 27th October, 2016 Respondent sent an e-Mail , . - stating that its receivables is getting delayed and payment will be delayed and promised to pay by 19th November, 2016 but Respondent did not keep up its promise. The Petitioner got issued a Legal Notice dated 16.2.2017 under Section 272 of the Companies Act, 2013 to the Respondent claiming an amount of Rs. 41,59,903/-.;