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Agarwal Coal Corporation Pvt. Ltd. v/s Sun Paper Mill Ltd. & Another

Company & Directors' Information:- COAL INDIA LTD GOVT OF INDIA UNDERTAKING [Active] CIN = L23109WB1973GOI028844

Company & Directors' Information:- SUN PAPER MILL LIMITED [Active] CIN = U21011TN1961PLC004531

Company & Directors' Information:- AGARWAL COAL CORPORATION PRIVATE LIMITED [Active] CIN = U23109MP2000PTC014351

Company & Directors' Information:- U C M COAL COMPANY LIMITED [Active] CIN = U10100UP2008PLC036169

Company & Directors' Information:- P. J. PAPER INDIA LIMITED [Active] CIN = U21098DL2006PLC151012

Company & Directors' Information:- K M S MILL PRIVATE LIMITED [Active] CIN = U17111TZ2005PTC011548

Company & Directors' Information:- N S COAL PRIVATE LIMITED [Active] CIN = U10100MH2003PTC140221

Company & Directors' Information:- S. A. PAPER PRIVATE LIMITED [Active] CIN = U21097WB2009PTC135556

Company & Directors' Information:- G B PAPER MILL PVT LTD [Strike Off] CIN = U21012PB1991PTC011831

Company & Directors' Information:- A J COAL PRIVATE LIMITED [Active] CIN = U23100MH1994PTC076762

Company & Directors' Information:- U P PAPER CORPORATION PRIVATE LIMITED [Active] CIN = U45203WB1945PTC012185

Company & Directors' Information:- SUN PVT LTD [Active] CIN = U24246RJ1984PTC003093

Company & Directors' Information:- G SUN INDIA PRIVATE LIMITED [Strike Off] CIN = U74899DL1995PTC071425

Company & Directors' Information:- T R PAPER MILL LTD [Strike Off] CIN = U21012PB1995PLC016113

Company & Directors' Information:- S V M PAPER PRIVATE LIMITED [Active] CIN = U21012DL2004PTC124024

Company & Directors' Information:- B N PAPER COMPANY PRIVATE LIMITED [Active] CIN = U74899DL1993PTC053155

Company & Directors' Information:- K M PAPER PRIVATE LIMITED [Active] CIN = U21012HP1996PTC017834

Company & Directors' Information:- M M PAPER PRIVATE LIMITED [Active] CIN = U21098WB2009PTC135633

Company & Directors' Information:- B L A COAL PRIVATE LIMITED [Active] CIN = U10200MH2009PTC191479

Company & Directors' Information:- G R COAL PRIVATE LIMITED [Strike Off] CIN = U10200GJ2007PTC050341

Company & Directors' Information:- C P PAPER PRIVATE LIMITED [Amalgamated] CIN = U74899DL1994PTC062173

Company & Directors' Information:- J S PAPER PRIVATE LIMITED [Strike Off] CIN = U21012RJ1990PTC005366

Company & Directors' Information:- COAL CORPORATION OF INDIA LTD [Strike Off] CIN = U10100WB1946PLC013091

Company & Directors' Information:- PAPER INDIA PVT LTD [Strike Off] CIN = U51109WB1957PTC023601

Company & Directors' Information:- SUN INDIA CORPORATION PRIVATE LIMITED [Strike Off] CIN = U65991TN1943PTC000994

Company & Directors' Information:- PAPER CORPORATION OF INDIA LIMITED [Dissolved] CIN = U99999MH1945PTC004331

Company & Directors' Information:- U P PAPER CORPN PVT LTD [Strike Off] CIN = U21093WB1945PTC012785

    Company Appeal (At) (Insolvency) No. 412 of 2019

    Decided On, 16 October 2019

    At, National Company Law Appellate Tribunal

    By, MEMBER

    For the Appearing Parties: Rajiv Ranjan, Varsha Banerjee, Milan Singh Negi, Akshat Singh, Raza Abbay, Aliya Durafshan, Ramji Srinivasan, Madhusmita Bora, Synola Mohapatra, G. Ashoka Pathy, Krishnendu Datta, Vineet Ranjan, Advocates.

Judgment Text

1. The Appellant 'Agarwal Coal Corporation Private Limited' ('Operational Creditor') filed a claim before the 'Interim Resolution Professional' / 'Resolution Professional'. However, in the 'resolution plan' submitted by the 'Corporate Debtor', which is a 'Micro, Small & Medium Enterprises', allowed a sum of Rs. 2173 in favour of the Appellant. The said 'resolution plan' was filed on 16th October, 2018 and approved. This appeal is in subsequent M.A. No. 677/2018 filed later and Interim Order dated 14th March, 2019 passed by the Adjudicating Authority (National Company Law Tribunal), Division Bench, Chennai, the Appellant ('Operational Creditor') has challenged the same.

2. According to the Appellant, the total claim amount as was Rs, 2,39,33,,935 which was filed before the 'Resolution Professional' related to the supply of coal from November, 2013 to February, 2014. Learned counsel for the Appellant submitted that the related invoices and agreements were also enclosed along with the claim.

3. Further, according to the learned counsel for the Appellant, in view of the claim amount of Rs. 2,39,33,935 shown in the Form 5 (Application under Section 9), the 'Corporate Insolvency Resolution Process' was initiated against the 'Corporate Debtor' at the instance of the Appellant.

4. It is submitted that the claim amount being more than Rupees One Lakh, the Adjudicating Authority admitted the application under Section 9 and therefore, it is not open to the 'Resolution Professional' or the 'Corporate Debtor' to suggest that the amount is Rs. 2173.

5. Reliance has been placed on the e-mail dated 2nd November, 2018 issued by the 'Resolution Professional' to the Appellant to suggest that the aforesaid claim amount was collated and validated by the 'Resolution Applicant', which reads as under:

6. Learned counsel appearing on behalf of the 'Resolution Professional' submitted that the claim amount collated was Rs 2173 as per report obtained from one independent 'Chartered Accountant', which was sent with the E-mail relied on by the Appellant. On validation of the same, the invoices were sent to the 'Corporate Debtor' / 'Resolution Applicant'. As per the said Report, the total amount as shown have been paid through RTGS or through other mode in the account of the 'Corporate Debtor' and only a sum of Rs. 2173 was found to be payable.

7. Same plea has been taken by the learned counsel for the 'Corporate Debtor' / 'Resolution Applicant'.

8. The Resolution Professional has brought on record a Report of independent Chartered Accountant dated 1st November, 2018, who on verification of the ledger of the 'Operational Creditor', invoices and the records of the 'Corporate Debtor' by letter dated 1st November, 2018 concluded that both the invoices under consideration are paid giving the balance of Rs. 2173 payable. The copy of the letter dated 1st November, 2018, which reads as follows:

9. The Bank statement has also been enclosed with the reply-affidavit filed by the 'Resolution Professional' in support of the stand taken.

10. The only question arises for consideration is as to how Section 9 application was admitted if the amount is found to be Rs. 2173 which is much less than Rupees One Lakh.

11. In this regard we may only mention that at the stage of admission of application under Section 9, the Adjudicating Authority is required to notice whether the record is complete and there is a 'debt' and 'default' as per decision of the Hon'ble Supreme Court in 'Innoventive Industries Ltd. v. ICICI Bank, (2018) 1 SCC 407. Even if the claim amount is disputed and is more than Rupees One Lakh, it is to be admitted, the Adjudicating Authority is not required to go into the details of verific

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ation of the claim which is required to be made by the 'Resolution Professional' and, therefore, even if some record shows that claim amount is Rupees One Lakh, it is always open to the 'Resolution Professional' to collate the claim. 12. In view of the f1s as narrated above, we are not inclined to interfere with the impugned order dated 14th March, 2019. The appeal is accordingly dismissed. No costs.