Sanjay Stores, an operational creditor, filed an application under Section 9 of the Insolvency & Bankruptcy Code, 2016, against M/s. Cookme(Spice) Pvt. Ltd., the corporate debtor, alleging default in payment of Rs. 61,86,420/- for delivered spices. The Corporate Debtor raised objections regarding the maintainability of the application, arguing that a proprietary concern cannot be sued in its own name and that there was a pre-existing dispute regarding the invoices. The application was initially considered by Bench-II of the Tribunal, which declared the Corporate Debtor ex parte and passed an order of admission. However, the ex parte order was later set aside, and the application was reconsidered by the current bench.
Sanjay Stores, an operational creditor, filed an application against M/s. Cookme(Spice) Pvt. Ltd., a corporate debtor, under Section 9 of the Insolvency & Bankruptcy Code, 2016, for default in payment of Rs. 61,86,420/-. Sanjay Stores claimed to have supplied and delivered goods to the corporate debtor based on invoices, believing that the corporate debtor would pay the amount demanded. The corporate debtor had made some payments via cheques. The corporate debtor received a demand notice under Section 8(1) of the Code but replied contending untenable contentions. The corporate debtor argued that the application was not maintainable because Sanjay Stores is a proprietary concern and lacks a legal entity. The corporate debtor also alleged a pre-existing dispute
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Sanjay Stores, an operational creditor, filed an application under Section 9 of the Insolvency & Bankruptcy Code, 2016, against M/s. Cookme(Spice) Pvt. Ltd., the corporate debtor, alleging default in payment of Rs. 61,86,420/- for delivered spices. The Corporate Debtor raised objections regarding the maintainability of the application, arguing that a proprietary concern cannot be sued in its own name and that there was a pre-existing dispute regarding the invoices. The application was initially considered by Bench-II of the Tribunal, which declared the Corporate Debtor ex parte and passed an order of admission. However, the ex parte order was later set aside, and the application was reconsidered by the current bench.
Sanjay Stores, an operational creditor, filed an application against M/s. Cookme(Spice) Pvt. Ltd., a corporate debtor, under Section 9 of the Insolvency & Bankruptcy Code, 2016, for default in payment of Rs. 61,86,420/-. Sanjay Stores claimed to have supplied and delivered goods to the corporate debtor based on invoices, believing that the corporate debtor would pay the amount demanded. The corporate debtor had made some payments via cheques. The corporate debtor received a demand notice under Section 8(1) of the Code but replied contending untenable contentions. The corporate debtor argued that the application was not maintainable because Sanjay Stores is a proprietary concern and lacks a legal entity. The corporate debtor also alleged a pre-existing dispute
…The Operational…
The Corporate Debtor…