Clicbrics Technologies Pvt. Ltd. Vs. Ansal Housing Limited - (NATIONAL COMPANY LAW APPELLATE TRIBUNAL) (05 Apr 2023)

If the claim of an Operational Creditor is undisputed and the operational debt remains unpaid, CIRP must commence

MANU/NL/0312/2023

Insolvency

The present appeal filed under Section 61 of the Insolvency and Bankruptcy Code, 2016 ('IBC') by the Appellant arises out of the order passed by the Adjudicating Authority. By the impugned order, the Adjudicating Authority dismissed Company Appeal, the application filed by Operational Creditor (the present Appellant) under Section 9 of the IBC seeking initiation of Corporate Insolvency Resolution Process ('CIRP') against Corporate Debtor- Ansal Housing Limited (the present Respondent). Aggrieved by the impugned order, the present appeal has been preferred by the Operational Creditor.

There is a clear admittance of operational debt which was due and payable on the part of the Corporate Debtor and that the operational debt was beyond the threshold limit of Rs.1 lakh. Further, it is pertinent to add here that, the Corporate Debtor has admitted that not only was the Operational Creditor entitled to receive payment, but the payment claimed was made in terms of the MoU and invoices were annexed with the claim. It is also unequivocally clear that, even on the date of filing of reply to the Section 9 application by the Corporate Debtor, by their own admission, the operational debt which had become due and payable remained unpaid. Therefore, default had been committed qua the operational debt owed to the Operational Creditor.

In the judgment of S.S. Engineers v. Hindustan Petroleum Corporation Ltd., wherein it has been clearly held that, if the claim of an Operational Creditor is undisputed and the operational debt remains unpaid, CIRP must commence for IBC does not countenance dishonesty or deliberate failure to repay the dues of an Operational Creditor.

The operational debt which had admittedly become due and payable having not been disputed prior to issue of demand notice and not been discharged by the Corporate Debtor, this is a fit case for admission of CIRP. The Adjudicating Authority has erroneously rejected the application under Section 9 of IBC. Impugned order is set aside.

Tags : CIRP ADMISSION GRANT