The appeal arises from an order dated 2023-01-12 passed by the Adjudicating Authority (National Company Law Tribunal, New Delhi Bench) in CP(IB) No.966/(ND)/2020. The Adjudicating Authority dismissed the application filed by Operational Creditor-East India Udyog Ltd. under Section 9 of the Insolvency and Bankruptcy Code (IBC) seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Corporate Debtor-M/s. SPML Infra Limited. The Operational Creditor claimed that the Corporate Debtor defaulted on payments for the supply of power and distribution transformers and other related items. The Corporate Debtor refuted the claim, citing pre-existing disputes regarding the quality of goods and services, delays in supply, and reconciliation of accounts.
East India Udyog Ltd. (Operational Creditor/Appellant) and SPML Infra Limited (Corporate Debtor/Respondent) had a business relationship since 2014, with the Operational Creditor supplying power and distribution transformers to the Corporate Debtor. Payments were initially made through Letters of Credit (LCs). From 2017, delays in opening LCs occurred due to the Corporate Debtor's financial problems. The Operational Creditor continued supplying goods on credit, with the assurance of payments within 45 days. The last payment was received on 2019-11-16. The Operational Creditor claimed Rs. 5,04,70,413 as principal and Rs. 1,37,24,977 as interest, plus Rs. 2,06,00,000 for unlifted transformers. On 2020-07-18, the Corporate Debtor refused to accept the outstanding debt,
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East India Udyog Ltd.…
Delays in opening Letters of Credit (LCs)…
The appeal arises from an order dated 2023-01-12 passed by the Adjudicating Authority (National Company Law Tribunal, New Delhi Bench) in CP(IB) No.966/(ND)/2020. The Adjudicating Authority dismissed the application filed by Operational Creditor-East India Udyog Ltd. under Section 9 of the Insolvency and Bankruptcy Code (IBC) seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Corporate Debtor-M/s. SPML Infra Limited. The Operational Creditor claimed that the Corporate Debtor defaulted on payments for the supply of power and distribution transformers and other related items. The Corporate Debtor refuted the claim, citing pre-existing disputes regarding the quality of goods and services, delays in supply, and reconciliation of accounts.
East India Udyog Ltd. (Operational Creditor/Appellant) and SPML Infra Limited (Corporate Debtor/Respondent) had a business relationship since 2014, with the Operational Creditor supplying power and distribution transformers to the Corporate Debtor. Payments were initially made through Letters of Credit (LCs). From 2017, delays in opening LCs occurred due to the Corporate Debtor's financial problems. The Operational Creditor continued supplying goods on credit, with the assurance of payments within 45 days. The last payment was received on 2019-11-16. The Operational Creditor claimed Rs. 5,04,70,413 as principal and Rs. 1,37,24,977 as interest, plus Rs. 2,06,00,000 for unlifted transformers. On 2020-07-18, the Corporate Debtor refused to accept the outstanding debt,
…East India Udyog Ltd.…
Delays in opening Letters of Credit (LCs)…