Transport Wings moves NCLT seeking insolvency proceedings against ISGEC

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Published: July 29, 2020 5:48 AM

While the Op wants to the tribunal to appoint an interim resolution professional in terms of Section 16 of the IBC, it has also sought to declare a moratorium and call for submission of claims.

A Bench led by Justice Ajay Kumar Vatsavayi issued notice to ISGE.A Bench led by Justice Ajay Kumar Vatsavayi issued notice to ISGE.

Kolkata-based Transport Wings (Cal) Pvt Ltd, an operational creditor (OP) and an MSM Enterprise, has moved the NCLT, Chandigarh, seeking to initiate the corporate insolvency process against ISGEC Heavy Engineering Ltd for recovery of its dues.

While the Op wants to the tribunal to appoint an interim resolution professional in terms of Section 16 of the IBC, it has also sought to declare a moratorium and call for submission of claims.

A Bench led by Justice Ajay Kumar Vatsavayi issued notice to ISGE.

Transport Wings had entered into a contract with ISGEC in April 2018 for transporation of machinery, equipment and goods from the suppliers in the regions where the corporate debtor had its ongoing projects. The ambit of the transcation also extended to shipments. However, ISGEC failed to clear the dues to the tune of around `2.50 crore. “The timely payment of the invoices corresponding to specific POs has been detained by the corporate debtor. This is despite the OP having rendered the requisite services in a timely and efficient manner,” the petition filed through counsel Ashwarya Sinha stated.

According to the petition, the CD replied by making part-payment and also belatedly invoked the arbitration mechanism. However, it had opted for arbitration without invoking the dispute resolution mechanism as provided under the agreement, Sinha stated.

According to Transport Wings, the annual audit report of the corporate debtor for 2018-19 shows that the total balance outstanding to MSMEs amounted to `9.84 crore including its outstanding dues.

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