Adecoo India Pvt Ltd Vs. BSES Rajdhani Power Ltd. : Application under Section 9 of IBC in NCLT

Update by Hammurabi & Solomon Partners





Adecco India Pvt. Ltd. (Applicant/Operational Creditor) filled an application dated 11th Dec 2018, with the National Company Law Tribunal to initiate the Corporate Insolvency Resolution Process against M/s BSES Rajdhani Power Ltd.(Respondent/Corporate Debtor)


The Corporate Debtor (“CD”), in continuation of a long business relationship, had approached the Operational Creditor (“OC”) for engaging the services of the OC on non-exclusive basis for engaging services, skills, and expertise of the (Human) Resources of the OC. Consequently, a Service Provider Agreement Dated 04.07.2017 (“SPA”) effective from 01.07.2017 to 30.06.2018 was executed between the OC & CD. As per said SPA the entire gamut of responsibilities of the said human resources rested on OC, in lieu whereof, consideration, being fees for aforementioned services, was to be disbursed by CD, as per arrangement recorded under ‘Annexure I’ of the SPA and the salary/wages as well as the statutory payments made by the OC towards the said human resources were to be reimbursed by the CD to the OC.


OC has maintained running account in respect of services rendered as per agreement for period ranging from 01.04.2018 to 08.12.2018, which indicates that at the time of issuance of the Demand Notice dated 11.12.2018 under Section 8 of the Insolvency & Bankruptcy Code, 2016 to the CD, the CD is liable to pay to the OC an amount totaling Rs. 2,68,06,255/- (Rupees Two Crores, Sixty-Eight Lakhs, Six Thousand, Two Hundred and Fifty-Five Only).


Demand notice dated 11.12.2018 was sent to CD u/s 8 of Insolvency and Bankruptcy Code, 2016 (hereinafter ’IBC‘) r/w Rule 5 of Insolvency and Bankruptcy (Application to Adjudicating Authorities) Rules, 2016 demanding the then outstanding amount of Rs. 2,68,06,266/- (Rupees Two Crores, Sixty-Eight Lakhs, Six Thousand, Two Hundred and Fifty-Five Only) along with pendente lite and interest @18% per annum. The said demand notice was served upon the Corporate Debtor on 13.12.2018.


Thereafter the OC preferred the captioned Application under Section 9 of IBC and subsequent to the filing of the Rejoinder of the OC to the Reply of the CD, the CD herein made a payment of Rs. 2,40,86,267/- (Rupees Two Crore Forty Lacs Eighty-Six Thousand and Two Hundred and Sixty-Seven Only) to the OC on 09.05.2019, out of the total claim of Rs. 2,68,06,266/- (Rupees Two Crores, Sixty-Eight Lakhs, Six Thousand, Two Hundred and Fifty-Five Only) along with pendente lite and interest @18% per annum.


The balance payable amounted to Rs. 27,19,988/- (Rupees Twenty-Seven Lacs Nineteen Thousand Nine Hundred and Eighty-Eight Only) due to be paid as debt by CD to OC along with pendent lite and interest @ 18% p.a. on the amount due and the amount already paid by the CD to the OC.


The arguments were heard by the Hon’ble NCLT, New Delhi and the matter was reserved for orders on 20.01.2020.


The matter was listed for pronouncement of order on 31.07.2020 and during the course of the pronouncement, the Hon’ble NCLT conveyed that the application under Section 9 of the Insolvency and Bankruptcy Code, 2016 stands admitted.


Find the full judgment order below:

Order dated 31.07.2020
.pdf
Download PDF • 342KB





Update by Hammurabi & Solomon Partners


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