Jinan K.R., Member - (1.) M/S. Anil steels who is the petitioner/operational creditor filed this petition under section 8 and 9 of the Insolvency and Bankruptcy Code, 2016 (in short I & BC, 2016) read with Rule 6(1) of Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 for initiating insolvency resolution process as against the respondent/corporate debtor A.D. Electro Steel Company Pvt. Ltd.
(2.) The operational creditor is engaged in business of manufacturing of alloy steels, plain and high carbon steel, SGI and graded casting etc. The operational creditor as per the purchase orders dated 29.10.2015, 21.12.2015 and 25.2.2016 for the purchase of Buffer Plunger Casting and Buffer Casting, supplied the same to the corporate debtor which would be valued for an amount of Rs. 56,94,977.00/-. In terms of the purchase orders operational creditor issued invoices against such supplies. The copies of the purchase orders produced and marked as Annexure II-D (page 48 to 50). The invoices issued against the supply of goods to the corporate debtor are produced and marked as Annexure II-E (page 51 to 57). The operational creditor alleged that the corporate debtor made payment of Rs. 4,44,782/- against the invoice No. M-50 and after that made lumpsum payments of Rs. 10,00,000/-, Rs. 5,00,000/-, Rs. 13,00,000/- and a cheque bearing No. 016246 dated 10.05.2016 for Rs. 20,00,000/- drawn on Bank of India. The said cheque was presented for clearing by the operational creditor but was returned unpaid with an endorsement "Exceeds Arrangements". The operational creditor served a legal notice dated 15.06.2016 under section 138 of the Negotiable Instrument Act, to the corporate debtor. The corporate debtor failed to pay the amount pertaining to the said dishonoured cheque. The operational creditor filed a complaint before the Metropolitan Magistrate, Kanpur against the corporate debtor for realisation of the amount on the basis of dishonour of cheque.
(3.) Irrespective of notice under S. 138 of the Negotiable Instruments Act the corporate debtor failed to discharge the entire liability and thereby operational creditor issued demand notice in Form-3 under section 8(1) of the I & BC, 2016 demanding an amount of Rs. 25,36,087/-. In reply to the demand notice the corporate debtor raised untenable contentions and raised unlawful claims against the operational creditor. The dispute raised by the corporate debtor in the reply notice not at all amount to a bona fide dispute and raised for the sake of objecting the application filed under section 8 and 9 of Insolvency & Bankruptcy Code, 2016 contended by the operational creditor. Upon the said contentions, the operational creditor prays for initiating insolvency resolution process against the corporate debtor.;