Sumiran Masterbatch Private Limited vs Union Quality Plastics Limited

IN THE MATTER OF: Sumiran Masterbatch Pvt. Ltd. ...Appellant

Versus

Union Quality Plastics Ltd. ...Respondent

Present: For Appellant : Mr. Pandey Sangeet Rai, Advocate.

For Respondent : None.

ORDER

19.05.2023 This Appeal has been filed against the Order dated

17.03.2023, passed by the Adjudicating Authority (National Company Law

Tribunal, Mumbai Bench), by which Order, the Adjudicating Authority has

disposed of the Section 9 Application filed by the Appellant with a finding that

Principal Amount of Rs. 96,52,223/- is required to be paid by the Corporate

Debtor, whereas Rs. 30 Lakhs have already been paid rest amount be paid

within three monthly instalments.

2. Learned Counsel for the Appellant challenging the Order contents that

the amount which has been arrived by the Adjudicating Authority i.e.,

Rs. 96,52,223/- is not correct amount. It is submitted that the Operational

Creditor has already given credit of the amount of Rs. 18,12,657/- and

Rs. 11,68,200/- and he further submits that the Adjudicating Authority

cannot direct for any settlement as has been done by the Impugned Order.

3. We have considered the submissions of Counsels for the Parties and

perused the records.

4. The Adjudicating Authority in Paragraph 5.3 has returned a finding that

default comes to Rs. 96,52,223/- taking into consideration the pleas which

was advanced by the Corporate Debtor. The finding has been returned by the

Adjudicating Authority about that the principal default amount is

Rs. 96,52,223/-, we see no reason to enter into issues sought to, raised by

the Appellant.

5. Further, the Appellant submissions that the Adjudicating Authority has

forced of settlement is also not correct. The Adjudicating Authority has after

determining the Principal Amount has directed the payment of the entire

amount, Rs. 30 Lakhs having already been paid by Demand Draft rest within

three months. Substantial justice has been done by the Adjudicating

Authority by the Impugned Order. Section 9 Proceedings cannot be resorted

by Operational Creditor as a Recovery Proceedings. The facts that Corporate

Debtor has paid Rs. 30 Lakhs and is ready to pay the rest amount indicates

that Corporate Debtor is a Solvent Company and the Adjudicating Authority

had decided not to send such Solvent Company into Insolvency with which

no exception can be taken.

6. We further notice that Adjudicating Authority has given liberty to the

Appellant if any default is committed and in the said event the Proceeding can

revive for total amount of Rs. 1,21,00,722/- with interest. The said liberty

protects the interest of the Appellant.

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7. We make it clear that if there are any grievances with regard to non-

payment of the full amount, the Appellant may take such recourse in law as

permitted.

With these observations, this Appeal is dismissed.

[Justice Ashok Bhushan] Chairperson

[Naresh Salecha] Member (Technical) Sim/nn

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