An application for corporate insolvency resolution is inadmissible where pre-existing disputes concerning the operational debt exist, overriding the initiation process under insolvency laws.

ORDER

PER: MANNI SANKARIAH SHANMUGA SUNDARAM, MEMBER (JUDICIAL)

1. The Present Application is being filed by the Applicant/Operational Creditor, i.e., Ruchira Green Earth Private Limited (“Operational Creditor”) under Section 9 of the Insolvency and Bankruptcy Code, 2016 (“Code”) read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 for initiation of Corporate Insolvency Resolution Process against KLB Komaki Private Limited (“Corporate Debtor”). The total amount claimed to be in default from the Corporate Debtor according to the ledger maintained by the Operational Creditor is ₹3,88,21,003/-, which includes the principle amount i.e. ₹3,62,00,270/- (Rupees Three Crores Sixty Two Lakh Two Hundred and Seventy Rupees Only) and interest @ of 24% per annum being ₹26,20,734/-. The amount in default is on account of non-payment of the supply of batteries so received by the Corporate Debtor. The date of Default is the date on which the last Invoice was raised, i.e., 29.08.2022.

2. The Corporate Debtor herein namely KLB Komaki Private Limited bearing CIN U34100DL1987PTC029855 incorporated under the provisions of the Companies Act 1956 is having its registered office at 10, First Floor, Rani Jhansi Road, Jhandewalan, New Delhi Central Delhi 110055. Since the registered office of the Corporate Debtor is situated in New Delhi, this Tribunal having jurisdiction over the NCT of Delhi is the Adjudicating Authority under sub-section (1) of section 60 of the Code in relation to the prayer for initiation of Corporate Insolvency Resolution Process against the Corporate Debtor.

3. SUBMISSIONS OF THE APPLICANT/OPERATIONAL CREDITOR:

i. The Applicant is a company duly incorporated under the provisions of the Companies Act, and is registered with the Registrar of Companies Delhi and Haryana. The registered office of the company is at 542-R Model Town Yamuna Nagar Haryana 135001. Further the Operational Creditor is also registered as a Micro Small and Medium Enterprise (MSME) by Government of Haryana.

ii. The Corporate Debtor portrayed itself to be a strong business entity in the field of electric vehicle and the Corporate Debtor after visiting and having conducted meetings with the Operational Creditor showed its interest in doing business with the Operational Creditor and accordingly placed purchase orders.

iii. The Operational Creditor upon receipt of the purchase order issued invoice and dispatched the materials to the Corporate Debtor through goods careers.

iv. The Operational Creditors started supplying material to the Corporate Debtor and started receiving payments, as reflected in the Ledger maintained in respect of accounts of the Corporate Debtor. The Operational Creditor also maintained a running account in respect of the material supplied to the Corporate Debtor. Between 01.04.2022 to 20.10.2022, the Operational Creditor continued to raise invoices for goods supplied and as on date the total outstanding of Rs. 3,62,00,269.17/- (Rupees Three Crore Sixty-Two Lakhs Two Hundred and Sixty Nine and Seventeen Paisa Only) is due and payable by the Corporate Debtor. The said amount is duly reflected in the ledger account maintained by the Operational Creditor.

v. As per the invoices raised by the Applicant, a credit period of 30 days was given to the Corporate Debtor for making the payment. The transactions between the Operation Creditor and the Corporate Debtor are under the GST regime and all the Eway bills have been duly confirmed by the Corporate Debtor. Further, there is acknowledgment by the Corporate Debtor on the invoices/builties, which confirms that the goods have been duly received by the Corporate Debtor.

vi. Till 23.08.2022 th