ORDER

Per: Kishore Vemulapalli, Member (Judicial)

1. This is an Application being C.P. (IB) No. 931/MB/2022 filed on 11.07.2020 by Melange Systems Private Limited, the Operational Creditor/Applicant, under Section 9 of Insolvency & Bankruptcy Code, 2016 (I&B Code) for initiating Corporate Insolvency Resolution Process (CIRP) in respect of PME lnfratech Private Limited.

1.1. The Applicant Operational Creditor has claimed that the Corporate Debtor is in default of a sum of Rs. 6,51,30,990/- (Rupees Six Crore, Fifty-One Lacs, Thirty Thousand, Nine Hundred & Ninety only), comprised of the principal outstanding of Rs. Rs. 5,38,47,605/- and interest amounting to Rs. 1,12,83,295/- @ 18% thereon till 21.07.2020, also interest till the date of payment. The date of default is stated in Part IV of the application as ‘debt fell due on different dates commencing from 4 December, 2018’ and a statement of account of unpaid invoices is annexed the petition. As per this statement, the invoices fell due between the period from 18.01.2019 to 19.05.2019.

2. The Operational Creditor is a wireless networking company offering low cost, low power wireless networking modules and complementary solutions for the next generation smart grid networks, smart cities and connected infrastructure. The Operational Creditor had supplied RF Modules to M/s Pal Mohan Electronics Pvt. Ltd. ("Pal Mohan”) and the Corporate Debtor, herein since the year 2013. It is the case of the Operational Creditor that –

2.1. The Maharashtra State Electricity Distribution Co. Ltd., (“MSEDCL”) floated a Tender in the year 2011 for the supply of Energy Meter with RF Communication capability. Operational Creditor, having expertise in the field of wireless embedded services, provided RF Modules to various companies including Pal Mohan, L&T Ltd., etc., to submit their application along with the samples with RF Modules to MSEDCL for award of Tender. The RF Module was one of the main components in the meter for getting qualified for Award of Tender. The said Pal Mohan, having got qualified / awarded Tender by MSEDCL, raised several Purchase Orders on Operational Creditor for supply of RF Modules since year 2013.The said Pal Mohan, instructed Operational Creditor, vide its emails dated 02.08.2017, 31.10.2017 and 09.12.2017, to raise invoices and dispatch materials to the Corporate Debtor instead of Pal Mohan as it was one of its group companies. As such, all invoices / bills since December 2018 were raised in the name of the Corporate Debtor, against the amended Purchase Orders dated 25 December 2018 issued by the Corporate Debtor to Operational Creditor. The Directors of the Corporate Debtor are also Directors of Pal Mohan. It is claimed in the application that the liability of Pal Mohan and Corporate Debtor is joint and several in view of the instructions given by Pal Mohan.

2.2. Neither the Corporate Debtor nor the said Pal Mohan have made any payment against the invoices / bills, raised by the Operational Creditor which include the applicable taxes. There are 34 invoices / bills of various dates and varied amounts amounting to Rs. 5,38,47,605/-, due for payment from the Corporate Debtor.

2.3. The Operational Creditor has already paid Rs. 82,14,042/- towards the Goods and Services Tax ("GST"), on all outstanding invoices / bills pertaining to the Corporate Debtor. The Corporate Debtor would have taken input credit, against the said payment made by the Operational Creditor to the GST authorities. Further, the Operational Creditor is a Micro enterprise registered under the Micro, Small and Medium Enterprises Development Act, 2006 (“MSME Act”) and that Corporate Debtor was aware of the same.

2.4. The Operational Creditor had therefore issued a Demand Notice to the Corporate Debtor on. 28 December 2019, demanding payment of the amount due Inclusive of interest thereon. The Corporate Debtor received the said Notice on 2 January 2020. The Corporate Debtor has neither made any payments nor has it repl