J U D G M E N T

(Hybrid Mode)

[Per: Arun Baroka, Member (Technical)]

1.This is an appeal filed by Rakesh Dalpatram Panchal who is the Ex-Director of M/s Gemini Engi. Fab. Private Limited – the Corporate Debtor against admission of Section 9 application, which was filed by Respondent No.1 – Kisaan Steels Pvt. Ltd. The Corporate Debtor – M/s Gemini Engi. Fab. Private Limited and Respondent No.1 – Kisaan Steels Pvt. Ltd. had entered into several purchase orders between December 2021 and June 2022 for the supply of forgings and other materials. It is claimed by the Appellant that R1 failed to adhere to the agreed delivery timelines and supplied defective goods, which led to multiple disputes between the parties. Numerous correspondences were exchanged between the parties which shows pre-existing dispute regarding quality, penalties and financial reconciliation. Appellant – Corporate Debtor had also imposed penalties on R1 for its breaches and reconciliation of accounts was going on. Respondent No.1 – Kisaan Steels Pvt. Ltd. had issued a demand notice under Rule 5 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 claiming an outstanding amount of Rs.6,13,