ORDER

PER: DR. SANJEEV RANJAN, MEMBER (TECHNICAL)

1. The present application has been filed by M/s. Eastern Interiors and Furnishers (hereinafter referred to as Operational Creditor/Applicant) through its sole Proprietor, namely, Mr. Suneel M. Bhatnagar to initiate Corporate Insolvency Resolution Process (“CIRP”) in accordance with Section 9 of the Insolvency and Bankruptcy Code 2016 (hereinafter referred to as “the Code’) against the Corporate Debtor/Respondent herein, i.e., M/s. Ripples Engineering Private Limited (hereinafter referred to as the ‘Corporate Debtor’) for the alleged default on the part of the Respondent amounting to INR 6,59,057/- being the total amount due (out of which INR 5,79,303/- being the principal amount, INR 79,754/- being the interest for the delayed period from appropriate dates of invoices till 31.10.2019.

2. The Corporate Debtor herein, i.e., M/s. Ripples Engineering Private Limited, incorporated under the provisions of the Companies Act, 1956 has its registered office situated at G-36, 3rd Floor, Green Park Main Market, New Delhi-110016. Since the registered office of the Respondent Corporate Debtor is in New Delhi, this Adjudicating Authority has jurisdiction in relation to the prayer for initiation of Corporate Insolvency Resolution Process in respect of Corporate Debtor.

CONTENTIONS

3. The particulars of transactions leading to the filing of the present application as averred by the Applicant/Operational Creditor are as under—

a. The Corporate Debtor had placed the purchase order of 2900 numbers of Pedestal Adjustable Systems, consisting of height adjustment from 50mm to 78mm; Model DPH 3-Buzon vide Purchase Order No.:885 dated 24.07.2018 for the aggregate value of INR 19,30,008 (Rupees Nineteen Lakh Thirty Thousand Eight only).

b. In accordance with the terms and conditions of the aforementioned Purchase Order, the payment was to be paid in three instalments, i.e., 30% of the total Purchase Order value was to be paid in advance, 40% in the form of post-dated cheques payable within 45 days from the Bill of Lading and the residual 30% of the value, the third instalment is to be paid in form of post- dated cheques payable within 30 days from the date of delivery of products.

c. That vide email dated 27.07.2018, the Operational Creditor/Applicant herein acknowledged the receipt of Purchase Order dated 24.07.2018 and requested to change the date of delivery along with a clause concerning payment terms. It is pertinent to mention herein that the Applicant herein specified that the payment would not be made on back-to-back basis; and the payment responsibility would solely reply upon the Corporate Debtor without any further linkage to the payment schedule from the client of the Corporate Debtor.

d. In accordance with the aforementioned terms with regards to the payment schedule, the Applicant herein received the amount of INR 5,78,702/- (Rupees Five Lakh Seventy-eight Thousand Seven Hundred Two only) through RTGS on 06.08.2018.

e. Thereafter, the Applicant herein placed the order to their supplies, namely, M/s. Buzon Pedestal International SA; and the Bill of Lading was issues on 23.08.2018. According to the directions of the Corporate Debtor, the Applicant herein ordered the specified products in the mentioned quantities to be delivered upon the Corporate Debtor on 31.10.2018. The delivery was made on 31.10.2018 and delivery challan no.:1/2018 was also duly acknowledged by the Corporate Debtor.

f. Thereafter, the Applicant herein received the second instalment, i.e., sum amounting to INR 7,72,003/- (Rupees Seven Lakh Seventy-two Thousand and Three only) through cheques no.:879504 dated 17.10.2018.

g. Thereafter, an invoice dated 01.11.2018 against the aforementioned products was raised and issued to the Corporate Debtor. Accordingly, the Corporate Debtor had issued another cheque bearing no.: 879531 dated 26.11.2018 for the outstanding amount of INR 5,79,303/- (Rupees Five Lakh Seventy-nine Thousand Three Hund