1. The present Application is filed by GP Harmon Recycling LLC (Operational Creditor/OC) against M/s. Tirumala Venkateshwara Paper and Board Pvt. Ltd. (Corporate Debtor/CD), seeking restoration of the Company Petition bearing C.P. (IB) No. 160 of 2020.

Application

2. It is submitted that the Operational Creditor entered into three offshore agreements with the Corporate Debtor through its agent in India, Nathani Continental LLP, pursuant to which the OC agreed to supply certain goods to the CD.

3. It is submitted that the OC dispatched goods from the United States of America along with the original title documents to the Corporate Debtor’s banker, namely State Bank of India (SBI), with instructions to release such documents only upon proof of payment. However, SBI allegedly released the original documents to the CD without securing payment.

4. It is submitted that the OC raised invoices amounting to USD 95,815.25 between January 2017 to May 2017. It is further submitted that after 2 years, the CD remitted a sum of USD 15,728.54 and failed to make the remaining amount USD 80,086.71.

5. It is submitted that the OC issued a legal notice dated 13.08.2019 and a demand notice dated 11.10.2019 calling upon the CD to clear the outstanding dues. The CD, vide letters dated 09.09.2019 and 10.01.2020, admitted its liability and proposed to discharge the same in four instalments on or before 30.03.2020; however, the said proposal was not honoured. It is further submitted that the CD remitted USD 40,121.53 to the OC on 15.02.2020.

6. It is submitted that the OC filed a Company Petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 on 17.02.2020 for an amount of USD 39,965.18. During the pendency of the said Petition, the CD admitted outstanding dues of Rs. 28,57,111/- and proposed repayment in four instalments, with the first instalment of Rs. 5,00,000/- payable upon acceptance of the proposal by the OC.

7. It is submitted that the OC made a counter-offer proposing payment in two equal instalments of USD 19,982.50 each, payable on 15.10.2021 and on or before 31.12.2021, respectively. However, the CD, vide email dated 18.11.2021, proposed a revised schedule wherein, upon acceptance, it would pay Rs. 5,00,000/- upfront and the balance of Rs. 23,57,111/- in weekly instalments, to be completed on or before 15.01.2022.

8. It is submitted that the OC accepted the revised proposal. However, on 29.11.2021, the OC informed the CD that no payment had been received. In response, the CD, vide email dated 06.12.2021, stated that it was facing technical difficulties in remitting funds in USD due to a change in its banking arrangements from SBI to IndusInd Bank.

9. It is submitted that the CD enquired whether payment could be made through a third-party bank account, which was declined by the OC. On 10.12.2021, when the matter was listed before this Authority, the CD sought one week’s time to effect payment. This Authority granted a final opportunity to clear the entire operational debt on or before 17.12.2021. However, the CD failed to comply. Consequently, vide order dated 21.03.2022, this Authority directed the CD to deposit a demand draft in favour of the OC in Indian Rupees before the Registry.

10. It is submitted that on 30.03.2022, the CD furnished a banker’s demand draft issued by IndusInd Bank for Rs. 30,28,148.05/-. The OC submitted that it may face difficulties in depositing the demand draft with its bankers in the USA, as it did not maintain a bank account in India. Accordingly, this Authority recorded as follows::

"... In pursuance of the orders passed by this Bench on 21.03.2022, the Corporate Debtor had taken a DD for Rs. 30,28,148.05, which is equivalent to USD 39,965 plus exchange rate and handed over the same to the Operational Creditor. In view of the submissions of the DD by the Corporate Debtor, this petition CP 160/9/HDB/2020 is dismissed. In case there is any difficulty with regard to exchange of monies in terms of dollars, we here