Ch. Mohd Sharief Tariq, Member - (1.) Under adjudication is C.P.965 of 2013 came to be filed under Section 433(e) (f) of the Companies Act, 1956 before the Hon'ble High Court of Madras and stood transferred to this Bench and renumbered as TCP/225(IB) /2017. The application has been filed by the Operational Creditor, viz. M/s.Aruppukottai Sri Jayavilas Ltd. against the Corporate Debtor, viz. M/s.Karpagam Spinners Private Ltd.
(2.) The Operational Creditor has filed the affidavit and bank certificate to make compliance with the provisions of Section 9(3) (b) (c) of I&B Code, 2016. It has been submitted by the applicant Operational Creditor that they have been supplying cotton to the respondent Corporate Debtor and the Corporate Debtor converts 'cotton' into 'Semi Finished Products' and return back the same to the applicant. In view of this, the petitioner has paid Rs.25 lakhs towards advance. It is further submitted that PF contribution of Rs. 1,00,000/- payable to the Provident Fund Commissioner by the Corporate Debtor company has been paid by the petitioner. The Operational Creditor has sent statutory notice on 07.01.2013 to the Corporate Debtor claiming an amount of Rs.20,22,344/-Copy of the notice is available at Page 69 of the typed set. The Counsel for Corporate Debtor has not denied the same. They have filed counter in the CP filed before the Hon'ble High Court and then filed additional counter after the matter has been transferred to this Bench. The plea that has been taken by the Respondent is that the ledger submitted by the petitioner has wrongful entries and that the outstanding debt is disputed. The Deed of Agreement of Conversion dated 30.06.2010 (placed at page 44 of the typed set) and Deed of Agreement of Conversion dated 01.06.2011 (placed at page 50) supports the claim of the Operational Creditor that they have paid to the Corporate Debtor a sum of Rs.25 lakhs towards advance for conversion of raw material (cotton) into Semi Finished Products.
(3.) Having heard both the sides and perused the documents. The Operational Creditior has made out a case for admission of the application. Therefore, we hereby allow the application of the Operational Creditor and order the commencement of the corporate insolvency resolution process which ordinarily shall get completed within 180 days, reckoning from the day this order is passed. The Operational Creditor has proposed the name of the IRP. Se-, we appoint Mr.Raghavendran, as interim;