Daaksh Jute LLP (Operational Creditor/Petitioner) filed a petition under Section 9 of the IBC, 2016, seeking to initiate CIRP against Karnataka Food and Civil Suppliers Corporation Limited (Corporate Debtor/Respondent) for an operational debt of Rs.19,25,01,796.48. The debt arose from the supply of jute gunny bags under two work orders. The Corporate Debtor, a State Government Company, disputed the claim, arguing it performs sovereign functions, the procurement violated the Karnataka Transparency in Public Procurements Act (KTPP Act) due to lack of price discovery and government approval, and that the contract was unlawful and void ab initio. The CD also disputed the interest component and claimed to be a solvent company.
Daaksh Jute LLP (OC) filed a petition under Section 9 of IBC, 2016, against Karnataka Food and Civil Suppliers Corporation Limited (CD).
The alleged operational debt is Rs.19,25,01,796.48, including a principal amount of Rs.14,55,63,931, interest at 24% p.a., and a security deposit of Rs.93,24,145.71.
The date of default is 03.08.2024.
The OC is an MSME engaged in the manufacture and supply of jute gunny bags.
The CD, a State Government Company, invited a tender on 18.12.2023 for jute gunny bags, in which the OC participated as the L2 bidder.
On 15.04.2024, the CD informed the OC that the L1 bidder's contract was terminated and the CD intended to procure bags from the OC.
The OC communicated its willingness to supply on 16.04.2024.
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Corporate Debtor…
Corporate Debtor informed Operational Creditor…
Daaksh Jute LLP (Operational Creditor/Petitioner) filed a petition under Section 9 of the IBC, 2016, seeking to initiate CIRP against Karnataka Food and Civil Suppliers Corporation Limited (Corporate Debtor/Respondent) for an operational debt of Rs.19,25,01,796.48. The debt arose from the supply of jute gunny bags under two work orders. The Corporate Debtor, a State Government Company, disputed the claim, arguing it performs sovereign functions, the procurement violated the Karnataka Transparency in Public Procurements Act (KTPP Act) due to lack of price discovery and government approval, and that the contract was unlawful and void ab initio. The CD also disputed the interest component and claimed to be a solvent company.
Daaksh Jute LLP (OC) filed a petition under Section 9 of IBC, 2016, against Karnataka Food and Civil Suppliers Corporation Limited (CD).
The alleged operational debt is Rs.19,25,01,796.48, including a principal amount of Rs.14,55,63,931, interest at 24% p.a., and a security deposit of Rs.93,24,145.71.
The date of default is 03.08.2024.
The OC is an MSME engaged in the manufacture and supply of jute gunny bags.
The CD, a State Government Company, invited a tender on 18.12.2023 for jute gunny bags, in which the OC participated as the L2 bidder.
On 15.04.2024, the CD informed the OC that the L1 bidder's contract was terminated and the CD intended to procure bags from the OC.
The OC communicated its willingness to supply on 16.04.2024.
…Corporate Debtor…
Corporate Debtor informed Operational Creditor…