Skip to main content

IBC: Debts Arising From Different Work Orders Can Be Clubbed To Satisfy The Minimum Threshold

Cause Title : Wam India Private Limited vs SN Engineering Services Pvt. Ltd., CP (IB) No.1152/MB-IV/2020, National Company Law Tribunal Mumbai

Date of Judgment/Order : 17.03.2023

Corum : Mr. Prabhat Kumar (Technical) & Mr. Kishore Vemulapalli (Judicial)

Citied: 

M/s. A2 Interiors Products Pvt. Ltd. Vs. M/s. Ahluwalia Contracts (India) Ltd. (2021) SCC online NCLT 438

Background

The Operational Creditor and the Corporate Debtor had a long-standing business relationship with each other. Corporate Debtor used to issue purchase orders to the Operational Creditor for materials/goods/items whenever required for its business purpose and Operational Creditor based on the purchase orders prepared and dispatched the goods along with the invoices for the goods. However, the CD started delaying payment and eventually a demand notice was issued by the OC. The CD did not raise any dispute. Rather the CD assured payment but failed to clear the outstanding debt.

Judgment

The NCLT observed that as per the above narrated facts and material placed on record that there is no dispute raised with regards to the Debt of the Operational Creditor and towards repayment of the same. Secondly, there is admission of liability in the meetings, correspondence and part payments made by the Corporate Debtor. On the objection raised by the CD so to the debt being related to different work orders, the NCLT held that in A2 Interiors Products (supra), it has been decided by the NCLAT that debts arising from different work order(s) can be clubbed to satisfy the minimum threshold limit.

Comments

Post a Comment

Most viewed this month

The recovery of vehicles by the financier not an offence - SC

Special Leave Petition (Crl.) No. 8907  of 2009 Anup Sarmah (Petitioner) Vs Bhola Nath Sharma & Ors.(Respondents) The petitioner submitted that  respondents-financer had forcibly taken away the vehicle financed by them and  illegally deprived the petitioner from its lawful possession  and  thus,  committed  a crime. The complaint filed by the petitioner had been  entertained  by  the Judicial Magistrate (Ist Class), Gauhati (Assam) in Complaint Case  No.  608 of 2009, even directing the interim custody of the vehicle (Maruti  Zen)  be given to the petitioner vide order dated  17.3.2009.  The respondent on approaching the Guwahati High  Court against this order, the hon'ble court squashed the criminal  proceedings  pending   before  the  learned Magistrate. After hearing both sides, the Hon'ble Supreme Court decided on 30th...
7 comments
Read more

Court approached in the early stages of arbitration will prevail in all other subsequent proceedings

In National Highway Authority of India v. Hindustan Steelworks Construction Limited, the Hon'ble Delhi High Court opined that once the parties have approached a certain court for relief under Act at earlier stages of disputes then it is same court that, parties must return to for all other subsequent proceedings. Language of Section 42 of Act is categorical and brooks no exception. In fact, the language used has the effect of jurisdiction of all courts since it states that once an application has been made in Part I of the Act then ―that Court alone shall have jurisdiction over arbitral proceedings and all subsequent applications arising out of that agreement and arbitral proceedings shall be made in that Court and in no other Court. Court holds that NHAI in present case cannot take advantage of Section 14 of the Limitation Act, 1963 for explaining inordinate delay in filing present petition under Section 34 of this Act in this Court.
Post a Comment
Read more

No Rebate For Stamp Duty Paid In Another State - Bombay HC

A three judge bench of the Hon'ble Bombay High Court (Bombay HC) in a recent judgment in the matter of Chief Controlling Revenue Authority, Maharashtra State, Pune and Superintendent of Stamp (Headquarters), Mumbai v Reliance Industries Limited, Mumbai and Reliance Petroleum Limited, Gujarat1 has held that orders in case of a scheme of arrangement under Section 391 to 394 of the Companies Act, 1956 (Act) involving different High Courts in multiple states, are separate instruments in themselves. Accordingly, stamp duty would be payable on all the orders (and consequently, all the states) without the benefit of remission, rebate or set-off.
Post a Comment
Read more