An insolvency application is not maintainable if there exists a genuine pre-existing dispute regarding the debt before the issuance of a demand notice.

ORDER

PER: MANNI SANKARIAH SHANMUGA SUNDARAM, MEMBER (JUDICIAL) 1. This instant application was filed by M/s Enpro Industries Private Limited (hereinafter referred as ‘Applicant’/ ‘Operational Creditor’), having office at Plot No. A-17 & 18, ’H’ Block, MIDC Pimpri, Pune, Maharashtra – 411018 under Section 9 of the Insolvency and Bankruptcy Code, 2016 (for brevity ‘the Code’) with a prayer to initiate Corporate Insolvency Resolution Process in respect of M/s Uttam Sucrotech International Private Limited, (hereinafter referred as ‘Respondent Company’ or ‘Corporate Debtor’).

2. The Respondent Company M/s Uttam Sucrotech International Private Limited having CIN: U29100DL2011PTC228755 was incorporated on 14.12.2011 under the provisions of the Companies Act, 1956 having its registered office situated at No. 95, F.I.E. Patparganj Industrial Area, New Delhi- 110092. The Corporate Debtor is engaged in the business of manufacturing, erection, supply, and commissioning of various electrical sugar plants and refineries. The Respondent Company has successfully executed multiple projects of national and international significance and is recognized as a pioneer in its field.

3. The total amount of default alleged in Part-IV of the application preferred under Section is Rs. 3,40,05,981/- (Rupees Three Crores Forty Lakh Five Thousand Nine Hundred and Eighty-One Only) including an Interest @ 24% from the due date of invoices 30.10.2021 till the date of actual realization and other charges along with interest thereto.

4. Submissions by the Ld. Counsel appearing on behalf of the Operational Creditor.

a. The Operational Creditor entered into a Purchase Order dated 10.09.2020 with the Corporate (CD) for the manufacture and supply of boiler components valued at Rs. 2,02,00,000/-. The Corporate Debtor released the amount of Rs. 20,20,000/- (Rupees Twenty Lakh Twenty Thousand Only) i.e., 10% of purchase order value i.e. 2,02,00,000/- (Rupees Two Crores Two Lakhs Only) as an advance to the Operational Creditor on 31st December, 2020.

b. It is submitted that as per the terms of Para 3 (b) of the purchase order dated 10.09.2020 Operational Creditor raised the invoice dated 26.03.2021 amounting to Rs. 30,30,000 (i.e. 15 % of PO value as an advance on receipt and identification of Raw material, proforma invoice and Advance Bank Guarantee) and provided the Advance Bank Guarantee dated 25.03.2021 issued by the SBI Bank for invoice amounting to Rs. 30,30,000 (the 15% value of the Purchase Order). However, the Corporate Debtor failed to make the payment of the outstanding amount due and payable to Operational Creditor.

c. The Operational Creditor for the balance 75% of PO value raised the proforma invoice dated 30.10.2021 amounting to Rs.1,87,86,000. However, the Corporate Debtor failed to make the payment of the outstanding amount due and payable to Operational Creditor.

d. On 06.09.2023, the OC issued a demand notice under Section 8 of the IBC, calling upon the CD to pay a total of Rs. 3,40,05,034/-. Subsequently, the Corporate Debtor replied to the said Demand Notice vide reply dated 25.09.2023, raising frivolous and bogus dispute against the Corporate Debtor. Further the Corporate Debtor acknowledged its liability and stated to amicably settle the dispute between the parties. In response to the aforesaid reply, the Operational Creditor sent a response to the Corporate Debtor on 27.11.2023 and asked the Corporate Debtor to unconditionally repay the unpaid operational debt (in default).

e. The Corporate Debtor is liable to pay to the Operational Creditor a total sum of total sum of Rs. 2,05,68,435/- along-with an interest @ 18% per ann