Section 9 petition maintainability determined by specific default in Section 8 demand notice; payments extinguishing debt qua listed invoices preclude admission, regardless of FIFO claims for broader balances.

O R D E R

1. The present application has been filed by Vattam Mahesh Kumar HUF (hereinafter referred to as “Applicant”/“Operational Creditor”/“OC”) on 04.12.2024, u/s 9 of the Insolvency and Bankruptcy Code, 2016 (“IBC”), r/w Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 (“AA Rules”), for initiating the Corporate Insolvency Resolution Process (“CIRP”), declaring moratorium and for appointment of Interim Resolution Professional (“IRP”), against Janapriya Nirmaan Conglomerate Private Limited (hereinafter referred to as “Respondent/Corporate Debtor”/“CD”) for default of Rs. 2,00,74,056/- (Rupees Two Crore Seventy-four Thousand Fifty-six only).

PARTIES:

2. The “Operational Creditor” herein is a proprietorship concern under the name ‘Vattam Mahesh Kumar HUF (Through Karta Vattam Mahesh),’ having its office at 8/13/92/2/B/2, near Janata Service Station, Hasart Nagar, Hyderabad, Telangana – 500064. The Operational Creditor is represented through its Karta/Proprietor, Mr. Vattam Mahesh.

3. The Corporate Debtor herein is Janapriya Nirmaan Conglomerate Private Limited, represented by its authorized representative, Mr. Srinivas, having its registered office at Plot No. 34, Road No. 8, Banjara Hills, Hyderabad, Telangana – 500034. The Corporate Debtor was incorporated on 31/05/2022 with a Paid-Up Capital of Rs. 3,95,62,000/- (Rupees Three Crore Ninety-Five Lakh Sixty-Two Thousand Only) and an Authorised Capital of Rs. 4,00,00,000/-(Rupees Four Crore Only).

4. The registered office of the Corporate Debtor being within the territorial jurisdiction of this Tribunal, this Bench has jurisdiction to entertain the present application under Section 9 of the Insolvency and Bankruptcy Code, 2016, read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016.

THE APPLICATION:

5. The Operational Creditor has stated to have entered into a commercial arrangement with the Corporate Debtor for the supply of steel materials, including TMT bars and related products, in the ordinary course of business. Pursuant to multiple purchase orders 1, Copies of Purchase Orders at pages 24 to 39 of the Application placed from time to time, the Operational Creditor supplied the goods and raised corresponding tax invoices 2, Copies of Tax Invoices at pages 40 to 59 of the Application which were duly acknowledged by the Corporate Debtor.

6. Initially, it is claimed that, the Corporate Debtor made payments in the usual course of business; however, from the year 2022 onwards, it began defaulting in clearing invoices within the agreed timelines.

7. According to the applicant the total sales made by the Operational Creditor to the Corporate Debtor between April 2023 and May 2024 amounted to Rs. 6,19,27,114/-, out of which the Corporate Debtor paid an aggregate sum of Rs. 4,37,00,344/-, leaving an outstanding principal balance of Rs. 1,82,26,770/-. As on 10.09.2024, the total amount outstanding and due from the Corporate Debtor to the Operational Creditor was Rs. 2,00,74,056/-, comprising a principal amount of Rs. 1,82,26,770/-, interest calculated at 24% per annum (up to 24.05.2024) amounting to Rs. 15,65,496/-, and GST on interest aggregating to Rs. 2,81,789/-. Interest continues to accrue until the date of actual payment 3, Copy of the interest computation is at page 60 of the Applicat