This appeal challenges the order dated 25.1.2023 passed by the Adjudicating Authority (National Company Law Tribunal, New Delhi), which initiated a Corporate Insolvency Resolution Process (CIRP) against the corporate debtor Meghaaarika International Pvt. Ltd. based on a section 9 application filed by BASF India Pvt. Ltd., the operational creditor. The appellant, a director in the suspended board of the corporate debtor, argued that the adjudication of the section 9 application was erroneous.
Satish Kumar Sethi, a member of the suspended board of directors of Meghaaarika International Pvt. Ltd. (corporate debtor), appealed against an order initiating CIRP based on a section 9 application by BASF India Ltd. (operational creditor). A sale order was issued on 6.1.2020, followed by a purchase order on 8.1.2020. A High Seas Sale Agreement (HSS Agreement) was entered into on 15.1.2020. The corporate debtor claimed issues with the quality of Isobutanol, sending an arbitration notice on 5.3.2020. A Letter of Credit (LC) was opened, but allegedly dishonored due to the operational creditor's failure to submit proper documents. The operational creditor issued a demand notice on 19.10.2020 and filed a section 9 petition on 23.12.2020. The HSS Agreement stipulated
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Sale order issued by…
Purchase order placed…
This appeal challenges the order dated 25.1.2023 passed by the Adjudicating Authority (National Company Law Tribunal, New Delhi), which initiated a Corporate Insolvency Resolution Process (CIRP) against the corporate debtor Meghaaarika International Pvt. Ltd. based on a section 9 application filed by BASF India Pvt. Ltd., the operational creditor. The appellant, a director in the suspended board of the corporate debtor, argued that the adjudication of the section 9 application was erroneous.
Satish Kumar Sethi, a member of the suspended board of directors of Meghaaarika International Pvt. Ltd. (corporate debtor), appealed against an order initiating CIRP based on a section 9 application by BASF India Ltd. (operational creditor). A sale order was issued on 6.1.2020, followed by a purchase order on 8.1.2020. A High Seas Sale Agreement (HSS Agreement) was entered into on 15.1.2020. The corporate debtor claimed issues with the quality of Isobutanol, sending an arbitration notice on 5.3.2020. A Letter of Credit (LC) was opened, but allegedly dishonored due to the operational creditor's failure to submit proper documents. The operational creditor issued a demand notice on 19.10.2020 and filed a section 9 petition on 23.12.2020. The HSS Agreement stipulated
…Sale order issued by…
Purchase order placed…