Insolvency and Bankruptcy proceedings cannot be initiated against a solvent company in the presence of pre-existing disputes regarding the debt.

1. This Company Petition is filed byWalchandnagar Industries Limited (“Operational Creditor”) under Section 9 of the Insolvency and Bankruptcy Code, 2016 (“Code”) read with Rule 6 of Insolvency & Bankruptcy (Application to Adjudicating Authority) Rules, 2016 seeking initiation of the Corporate Insolvency Resolution Process (“CIRP”) againstGreen Valliey Industries Limited (“Corporate Debtor”) on account of non-payment of an operational debt amounting to Rs. 4,99,71,581/- (Rupees Four Crore Ninety-Nine Lakh Seventy-One Thousand Five Hundred Eighty-One Rupees Only) as on 15.05.2012 and in lieu of the transfer of proceedings from the Hon'ble High Court of Meghalaya.

2. Submissions by the Operational Creditor:

2.1. The Corporate Debtor had entered into a Contractual Agreement bearing No.

GVILP/WIL/001 dated 12.02.2008 with the Operational Creditor for the supply, erection and commissioning of equipment for a new cement plant having a capacity of 1000 TPD clinker. The said agreement was executed on mutually agreed terms, conditions, and covenants as stipulated therein. A copy of the Contractual Agreement bearing No. GVILP/WIL/001 dated 12.02.2008 is annexed as ‘Annexure C’.

2.2. The said Contract was subsequently amended by the Operational Creditor and the Corporate Debtor by way of a duly executed Amendment Agreement dated 29.08.2008, whereby the scope of supply was revised and the total contract consideration was increased to Rs. 53,22,00,000/- (Rupees Fifty-Three Crores Twenty-Two Lakhs Only). A copy of the Amendment Agreement dated

29.08.2008 is annexed as ‘Annexure D’.

2.3. Thereafter, the accounts were duly reconciled on 08.01.2010, pursuant to which a sum of Rs. 3,95,66,732/- was due and payable by the Corporate Debtor to the Operational Creditor. The Corporate Debtor expressly acknowledged the said reconciliation and assured payment of the outstanding amount in due course.

2.4. In further acknowledgment and admission of its liability, the Corporate Debtor issued four (4) post-dated cheques aggregating to Rs. 3,95,66,732/- towards IA(Comp. Act)/30/GB/2022 IA (IBC)/79/GB/2024 discharge of its admitted dues. Out of the said four cheques, three (3) cheques aggregating to Rs. 3,00,00,000/- were duly honoured and encashed upon presentation.

2.5. The remaining fourth (4) cheque bearing an amount of Rs. 95,66,732/- (Rupees Ninety-Five Lakhs Sixty-Six Thousand Seven Hundred and Thirty-Two Only) was initially kept on hold at the request of the Corporate Debtor. Upon subsequent presentation, the said cheque was dishonoured. The Operational Creditor presented the said cheque on two occasions; however, the cheque was returned unpaid on both occasions.

2.6. Consequent thereto, the Operational Creditor has initiated proceedings under Section 138 of the Negotiable Instruments Act, 1881 , being SSC No. 1003 of 2016, which is presently pending adjudication before the Court of the 4th Joint Civil Judge (Junior Division) & JMFC, Indapur, District Pune.

2.7. Subsequently, on 28.06.2010 and 29.06.2010, the accounts were again reconciled, pursuant to which a total sum of Rs. 1,89,06,230/- (Rupees One Crore Eighty- Nine Lakhs Six Thousand Two Hundred and Thirty Only) was found due and payable by the Corporate Debtor to the Operational Creditor. The Corporate Debtor duly acknowledged and accepted the said reconciliation of accounts and assured payment of the outstanding amount in due course. A copy of the reconciled account statements dated 08.01.2010, 28.06.2010, 29.06.2010 and

21.09.2010 is annexed as ‘Annexure E’.

2.8. Thereafter, the Corporate Debtor made part payments of Rs. 2,00,000/- on

01.08.2011 and Rs. 5